The custom duty on the import of electronics and home appliances like refrigerators, air conditioners and washing machines and other equipment used in their local manufacturing is likely to be increased during the next fiscal year.
An official source said that the duties on the electronic consumer items will go up with the retraction of the concessionary SROs. He said at least 10 per cent increase in duty is expected which was granted through SROs in 2006.
The concessions were granted on the pretext that the local manufacturing was not fulfilling the domestic demand and import of raw material was required. However, later on it was extended to all the home appliances and even cars ACs were included in the list.
It is important to mention that under pressure from the IMF, the government had presented a three year plan to withdraw Rs 500 billion per annum worth of tax concessions and exemptions to various influential sectors.
During the current fiscal year, the government withdrew tax concessions worth Rs 105 billion, whereas for the next fiscal year the figure is estimated to be close to Rs 180 billion.
