Dawn
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02:59 May 16, 2025
• Overhaul aims to cut customs, regulatory duties • Reforms expected to boost exports by $5bn in five years • Simple average tariff to fall from 19pc to 9.5pc ISLAMABAD: In a major policy shift, Prime Minister Shehbaz Sharif has approved a comprehensive five-year tariff reform plan to be announced in the federal budget 2025-26, aiming to drastically reduce customs duties, additional customs duties, regulatory duties on raw materials and semi-finished goods, and a phased reduction in overall tariff protections for select industries. The first phase of the reform, set to be launched with the next budget, introduces a simplified customs duty structure with slabs of 0, 5, 10, 15, and 20 per cent. The existing 16pc slab will be reduced to 15pc, while the 11pc rate will drop to 10pc. The 3pc slab will be abolished, with products either moved to a zero-duty category or the new 5pc slab. The proposed tariff overhaul, seen by Dawn, is set to eliminate the additional customs duty of 2pc on 4,294 tariff lines in the upc...