Latest news with #exportcompetitiveness
Reuters
27-05-2025
- Business
- Reuters
India to reinstate tax refund benefits for exporters from June to boost competitiveness
NEW DELHI, May 27 (Reuters) - India will restore benefits under a key scheme that reimburses exporters for embedded duties, taxes, and levies not covered by any other government refund programme in an effort to boost export competitiveness, the trade ministry said on Tuesday. The benefits under the Remission of Duties and Taxes on Exported Products were introduced on January 1, 2021, but ended on February 5 this year. They will now be applicable for all eligible exports from June 1, covering sectors including textiles, chemicals, pharmaceuticals, cars, agriculture, and food processing, the ministry said in a statement. "Their reinstatement is expected to provide a level playing field for exporters across sectors," the statement said, adding the scheme would use a digital platform "to ensure transparency and efficiency". Total disbursements under the programme exceeded 579.77 billion Indian rupees ($7 billion) as of March 31, the ministry said. The benefits were earlier paused to review the support required by exporters, an official who did not want to be named told Reuters. "In the current environment, the government has felt the need to continue to give such benefits," the official said. The announcement comes days after India clinched a trade agreement with Britain and as it races to seal a trade deal with the U.S. before the end of the 90-day pause on hefty additional import tariffs imposed by U.S. President Donald Trump. ($1 = 85.2520 Indian rupees)
Arab News
16-05-2025
- Business
- Arab News
Pakistan condemns India's ‘unprovoked' military action during talks with UK foreign secretary
KARACHI: Pakistan on Friday approved a major reduction in import tariffs as part of its broader effort to revive the economy, boost exports and attract foreign investment, an official statement circulated by the Prime Minister's office said. The move comes as Pakistan emerges from a prolonged economic crisis and shifts from restrictive import controls, previously used to protect dwindling foreign currency reserves, toward policies aimed at sustaining growth and attracting investment. With inflation easing and macroeconomic indicators improving, the government is working on tariff reforms to boost industrial productivity. Pakistani exports, especially in textiles, engineering and pharmaceuticals, rely heavily on imported inputs, making import duties a key factor in export competitiveness. The issue came up for decision during a high-level meeting on the National Tariff Policy, chaired by Prime Minister Shehbaz Sharif in Islamabad. 'In line with the government's economic recovery plan, the prime minister has taken a historic step by approving a gradual but significant reduction in import tariffs,' the statement said, calling it 'a key milestone' in achieving economic stability and enabling export-led growth. Under the approved changes, Pakistan will phase out additional customs duties, currently ranging from two to seven percent, along with regulatory duties, between five and 90 percent, over the next four to five years. The government will also cap general customs duties at 15 percent, compared to current rates that sometimes exceed 100 percent, and limit tariff slabs to four categories to reduce complexity and ensure a level playing field across industries. 'It's too early to comment whether the focus of the government is to reduce or abolish these duties on raw materials or finished products,' Shankar Talreja, head of research at Topline Securities, told Arab News. 'If duties are abolished on raw materials, it may generate the desired results of increase in exports,' he added. Talreja maintained some industries in Pakistan needed these duties to remain in place to continue being viable businesses. He noted that in the absence of them, Chinese products could inundate the market, which could adversely impact the local industry. However, the official statement said the policy shift was expected to support the government's goals of curbing unemployment, containing inflation further and providing dignified employment opportunities, particularly for educated youth. Rao Aamir Ali, deputy head of research at Arif Habib Limited, said the government's decision related to the import duties was not in response to the United States' 'reciprocal tariffs.' 'This move is not related to Pakistan's tariff issue with the US,' he told Arab News. 'It is part of the budget proposals from various industrial sectors seeking reduction in customs duties to cut their input costs,' he added. Sharif ordered the formation of an implementation committee to oversee the rollout of the tariff reforms during the meeting and reiterated that economic revival remained his administration's top priority.
Arab News
16-05-2025
- Business
- Arab News
Pakistan moves to cut import tariffs in bid to boost exports, attract investment
KARACHI: Pakistan on Friday approved a major reduction in import tariffs as part of its broader effort to revive the economy, boost exports and attract foreign investment, an official statement circulated by the Prime Minister's office said. The move comes as Pakistan emerges from a prolonged economic crisis and shifts from restrictive import controls, previously used to protect dwindling foreign currency reserves, toward policies aimed at sustaining growth and attracting investment. With inflation easing and macroeconomic indicators improving, the government is working on tariff reforms to boost industrial productivity. Pakistani exports, especially in textiles, engineering and pharmaceuticals, rely heavily on imported inputs, making import duties a key factor in export competitiveness. The issue came up for decision during a high-level meeting on the National Tariff Policy, chaired by Prime Minister Shehbaz Sharif in Islamabad. 'In line with the government's economic recovery plan, the prime minister has taken a historic step by approving a gradual but significant reduction in import tariffs,' the statement said, calling it 'a key milestone' in achieving economic stability and enabling export-led growth. Under the approved changes, Pakistan will phase out additional customs duties, currently ranging from two to seven percent, along with regulatory duties, between five and 90 percent, over the next four to five years. The government will also cap general customs duties at 15 percent, compared to current rates that sometimes exceed 100 percent, and limit tariff slabs to four categories to reduce complexity and ensure a level playing field across industries. The policy shift is expected to support the government's goals of curbing unemployment, containing inflation further and providing dignified employment opportunities, particularly for educated youth. Sharif also ordered the formation of an implementation committee to oversee the rollout of the tariff reforms and reiterated that economic revival remained his administration's top priority.
