Latest news with #ACD
Business Recorder
a day ago
- Business
- Business Recorder
Pakistan leather industry seeks cut in import duties on chemicals
Pakistan's leather industry has proposed lowering of customs duties on the import of chemicals used in leather manufacturing, saying it will help make the sector regionally competitive and viable, it was learnt on Wednesday. Hamid Arshad Zahur, Central Chairman of the Pakistan Tanners Association (PTA), proposed to reduce customs duty from 20% to 16%, and Additional Customs Duties (ACD) from 4% to 2% across all chemical imports. The development comes as Muslims around the world are to celebrate Eid-ul-Adha this week. In Pakistan, the first day of Eid will fall on Saturday, June 7. According to Zahur, around 40% of Pakistan's total leather production is sourced through sacrifice of animals during Eid-ul-Adha. Sharing statistics, PTA central chairman said tanners received around 0.7 million animal hides, including 4.5 million goats, 2.5 million cows, 0.5 million sheep, and 25,000 camels last year. The total value of the collected hides was estimated at Rs10 billion, he said. Zahur further stated that around 25% of the hides, worth approximately Rs4 billion, were spoiled due to 'mishandling and the failure to preserve them with salt in a timely manner'. 'Tanners have been urging both the federal and provincial governments to establish proper abattoirs to prevent the wastage of hides,' he said. 'The country lost hides worth Rs4 billion due to improper handling, which constitutes 40% of total local production.' PTA central chairman emphasised that the government should establish centralised slaughterhouses for carrying out religious sacrifices similar to other Muslim countries such as Saudi Arabia, Malaysia, Türkiye, Indonesia, and others. In its budget proposals, PTA requested to keep the export sector under the original Fixed Tax Regime, but to increase the turnover tax from 1% to 1.5% to increase government revenue. Eid-ul-Adha 2025: trade peaks at Asia's largest cattle market in Karachi The leather sector is normally working at a 4-8% profit margin in general and hence a 1.5% turnover tax will actually be a net 25% tax on profit and in line with the Federal Board of Revenue's (FBR) revenue generation targets, according to the PTA. Zahur urged not to bring the export sector under the final tax regime. He opposed the proposal to apply sales tax at the import of raw materials under the Export Facilitation Scheme (EFS) in the next budget. 'This step by the FBR/Ministry of Finance will totally negate the basic principal of no duty, no drawback under which the EFS was originally developed,' he said. 'One wrong has been done last year by imposing sales tax on domestic sales under EFS and it will be a second wrong to impose sales tax on import of raw material under the EFS, going forward. 'This will lead to a cash flow crunch, defeat the very purpose of the EFS and be detrimental in increasing the exports any further,' PTA official said. He urged the government to bring the EFS back to its original form as on June 30, 2024, whereby purchase of domestic and imported raw materials under EFS was exempt from any duties or taxes. Meanwhile, PTA suggested to bring down the rate of sales tax down to 17% in the next budget from the current 18%. It also proposed minimum tax threshold for salaried individuals at Rs1.2million per annum.
Business Recorder
3 days ago
- Business
- Business Recorder
Sindh farmers ask FBR to reduce duty on tractors
ISLAMABAD: Small farmers from Sindh have approached Federal Board of Revenue (FBR) to reduce custom duty on imported tractors from 15 percent to 5 percent under massive tariff rationalisation plan to be implemented in budget (2025-26) to support agriculture sector. Farmers have also proposed FBR Chairman Rashid Mahmood to reduce the existing sales tax rate on locally manufactured and imported tractors from 14 percent to 5 percent, enabling the farmers to purchase tractors. This is not an exemption, but only a reduced rate already applicable of many items including vehicles under Sales Tax Act. The budget proposals of the Sindh Chamber of Agriculture (SCA) Hyderabad to FBR Chairman included rationalisation of tax structure and abolishment of levy of sales tax on tractors to support agriculture sector. Sales tax on tractors, pesticides likely When contacted, sources in the FBR revealed that the proposals are under consideration of the FBR during ongoing budget preparation exercise to facilitate poor farmers of the country. The chamber stated that the approved tariff plan to be implemented in budget (2025-26) covers elimination of Additional Customs Duty (ACD); phasing out of Regulatory Duty (RD); gradual elimination of the Fifth Schedule of the Customs Act and restructuring of the customs tariff. This must cover most essential item i.e. tractor which is not a luxury item like vehicle. Nabi Bux Sathio, Senior Vice President, Sindh Chamber of Agriculture Hyderabad stated: 'We, as representatives of the farming and agricultural community in Sindh, feel compelled to shed light on the significant challenges and hardships faced by our fellow farmers and agriculturists in recent times'. The chamber stated that the agricultural sector plays a pivotal role in Pakistan's economy, contributing 24% to the GDP and employing 37.4% of the workforce. However, the sector is currently grappling with a myriad of complex issues. These include the lack of investment and support, the adverse effects of climate change, and the dwindling availability of water, exacerbating the challenges faced by farmers and agriculturists. Moreover, farmers have been severely impacted by the inability to secure fair prices for their produce. The government's announcement of support prices for wheat and cotton has not translated into actual purchases at the stipulated rates, leaving farmers with no choice but to sell their crops at significantly lower prices. The situation is further compounded by the low prices offered for rice and the potential delay in the sugar cane crushing season, which has added to the woes of the farming community. He urged the FBR to reduce the existing sales tax rate on locally manufactured and imported tractors from 14% to 5% enabling the farmers to purchase tractors, and also reduce the custom duty on imported tractors from 15% to 5% and also for re-conditional tractors. Copyright Business Recorder, 2025
Express Tribune
7 days ago
- Business
- Express Tribune
Coffee sector for duty cuts
Listen to article Stakeholders in Pakistan's growing coffee sector are urging the government to eliminate the 28% combined Regulatory Duty (RD) and Additional Customs Duty (ACD) on bulk instant coffee imports, arguing the current levy is stifling industry growth and preventing the development of a domestic coffee market. The duties were imposed in June 2021 under SRO 840(I)/2021 and currently include a 15% RD and 2% ACD, with other charges making up the rest. Industry sources point to the disparity between coffee and tea imports, which face only a 13% duty. They also note that the tariff on raw instant coffee is disproportionately high compared to finished coffee products, which attract duties between 42% and 53%. According to industry representatives, this duty regime contradicts Pakistan's National Tariff Policy, which emphasises policy predictability, value addition, and industrial efficiency. They argue that eliminating the duties would significantly lower the landed cost of bulk instant coffee, making local manufacturing more feasible and encouraging investment in domestic processing, blending, and packaging facilities. With rising demand for coffee — driven by remote work trends and a flourishing café culture — stakeholders believe that lower raw material costs would also help bring down consumer prices and make coffee more accessible across homes and offices nationwide. They add that reducing duties would streamline the coffee supply chain, cut administrative costs, and offer consumers a wider variety of products at more competitive prices. Industry players see strong potential in exports, saying local producers could create value-added instant coffee and ready-to-drink beverages for international markets.
Business Recorder
26-05-2025
- Business
- Business Recorder
Import of bulk instant coffee: Govt urged to remove regulatory, additional duties
LAHORE: Companies involved in coffee business in the country have urged the federal government to remove regulatory and additional customs duties on the import of bulk instant coffee, calling the current duty structure a major barrier to the growth of Pakistan's coffee industry. The issue stems from SRO 840(I)/2021, introduced in June 2021, which imposed high import duties on coffee. Finished coffee products are subject to duties ranging between 42% and 53%, even the import of bulk instant coffee - the raw material used by local manufacturers - is taxed at a significant 28%. This includes a 15% Regulatory Duty (RD) and a 2% Additional Customs Duty (ACD). In comparison, tea imports are taxed at just 13%, creating an uneven playing field between the two beverage industries, industry stakeholders told Business Recorder. Industry stakeholders argue that these duties not only make it difficult for local businesses to compete but also discourage investment in Pakistan's emerging coffee sector. They emphasize that removing RD and ACD from bulk instant coffee imports would align with the National Tariff Policy's guidelines, specifically under paragraph 6.3, which calls for the rationalization of tariffs on raw materials to support domestic industry. The potential benefits of reducing these duties are wide-ranging. Lower import costs would directly reduce the production expenses for local manufacturers, encouraging more firms to enter the coffee business and invest in infrastructure. With greater access to affordable raw materials, businesses could set up local processing and packaging units, creating employment and supporting economic activity. Moreover, reducing duties could help expand the consumer market. Cheaper coffee products would be more accessible to a larger segment of the population, potentially increasing domestic consumption. As demand rises, the sector could see the entry of new players and more diverse offerings, contributing to a robust coffee culture. The government could also benefit from the broader economic activity generated by a growing coffee industry. While the removal of duties may lower immediate customs revenue, the long-term gains through higher income tax, sales tax, and job creation could more than make up for it. Additionally, enhanced local production capacity would open opportunities for exporting value-added coffee products, such as ready-to-drink beverages, which could boost Pakistan's export profile. With the increasing popularity of coffee among younger consumers and the rapid growth of café chains in urban areas, many believe now is the ideal time for policy reform. Industry voices continue to stress that reducing the import burden on instant coffee is not just a business-friendly move, but a strategic step towards developing a competitive and sustainable coffee industry in Pakistan. Copyright Business Recorder, 2025
News18
23-05-2025
- Business
- News18
Why Konkan Railway Is Being Merged Into Indian Railways
Last Updated: The Konkan Railway Corporation Limited (KRCL) is set be merged into Indian Railways after receiving a final nod from the Maharashtra government in April 2025. The Konkan Railway, one of the most breathtaking and strategically crucial rail routes in the country, is now poised for a historic transition. After nearly three decades of functioning as a distinct entity, the Konkan Railway Corporation Limited (KRCL) is set be merged into Indian Railways, after receiving a final nod from the Maharashtra government last month. With Goa, Karnataka, and Kerala already on board, the path is now clear for complete integration of this engineering marvel into the national network. Established in 1990 as a special purpose vehicle under the Ministry of Railways, KRCL was tasked with the task of laying railway tracks through the formidable Western Ghats. Officially operational since January 1998, the 741-kilometre line stretches from Roha in Maharashtra through Goa and Karnataka to Kerala, drastically cutting travel time while providing critical connectivity to remote coastal areas. According to a report by The Indian Express, the route has not only been a lifeline for passenger and freight movement along the Konkan coast but also a symbol of engineering prowess. Born out of the need to bridge an infrastructural gap along India's western coastline, KRCL was formed as a joint venture with the Centre holding a 51% stake, Maharashtra 22%, Karnataka 15%, and both Goa and Kerala at 6% each. The project was among the most challenging ever undertaken by Indian Railways, requiring over 2,000 bridges and 92 tunnels to complete. The result was a rail line that remains one of the most scenic, and technically demanding, in the world. Why Is The Merger Happening Now? 1. Severe Financial Constraints 2. Unfulfilled Safety Promises KRCL had planned to install an Automatic Control Device (ACD) to enhance operational safety. However, the project was never implemented. With safety being a core priority for modern rail operations, the lack of progress on ACD installation became a major liability. 3. Sky Train Dreams That Never Took Off In a much-publicised move, KRCL had promised the launch of a futuristic 'Sky Train' project. The standalone model, once heralded as innovative, has now been deemed 'unsustainable" by Maharashtra Chief Minister Devendra Fadnavis in a letter to Railway Minister Ashwini Vaishnaw. As The Indian Express reports, Fadnavis emphasised that the merger would allow KRCL to 'leverage the route's huge investment base" through Indian Railways' significantly larger financial muscle. Maharashtra's Conditions And the Centre's Nod The Maharashtra government insisted on two key conditions for the agreement: first, that the iconic name 'Konkan Railway" be preserved post-merger to retain its regional identity and historic significance; second, that Indian Railways reimburse Maharashtra's original investment of over Rs 394 crore made during KRCL's formation in 1990. The Centre reportedly accepted both conditions, clearing the last hurdle to what could be a transformational shift for the region's rail infrastructure. What Comes Next And What Passengers Can Expect With all shareholder states now aligned, the final step lies with the Railway Board, which will oversee the technical, financial, and administrative transition. According to The Indian Express, the merger will entail realigning employee hierarchies, renegotiating service contracts, and standardising operational procedures. This process is expected to take several months. For passengers, the long-term impact is expected to be positive. The merger promises upgraded infrastructure, more frequent and better-connected trains, enhanced safety measures, and the integration of KRCL services with Indian Railways' centralised ticketing and grievance redressal systems. Fares could become more competitive, and travellers will likely enjoy a smoother, more standardised experience across routes. From cutting through ancient mountains to connecting four coastal states, the Konkan Railway has always been more than just a transport route – it has been a lifeline and a symbol of innovation. As it prepares to become part of the vast Indian Railways tapestry, the challenge will be to modernise without losing the charm and character that have defined it for generations. Get the latest updates on car and bike launches in India — including reviews, prices, specs, and performance. Stay informed with breaking auto industry news, EV policies, and more, Also Download the News18 App to stay updated! tags : Indian Railways Konkan Railway Location : New Delhi, India, India First Published: May 23, 2025, 14:10 IST News auto Why Konkan Railway Is Being Merged Into Indian Railways | Explained
