Regulatoryduty and its opportunities in Pakistan Import duty is a tax received on importsand some exports by the customs authorities of a country. It is usually basedon the value of the goods that are imported. The main purpose of imposing dutyin Pakistan is to maintain the level of exports and imports. When the economy wants to reduce its imports then itincrease this duty and when the economy wants to increase the imports then itmay reduce this duty.in other words custom duty is a kind of indirect tax whichis realized on goods of foreign trade .it is categorized into import duty andexports duty imposed upon import and exports .it is imposed on all or any ofthe goods specified at a rate not exceeding on hundred per cent of the value ofgoods .this duty is imposed on the goods at their import or export.
CurrentlyPakistan face a trade deficit now the government of Pakistan increase thisduty. In a bid to contain the ballooning bill ofimported goods, the federal government has enhanced by up to 350% theregulatory duties on 356 essential and luxury items. However, there are slimchances that the move will have any meaningful impact on the import bill. Forthe first time in last many years, government has also imposed regulatoryduties on all types of imported cars, including the hybrid vehicles.
Of the 350tariff lines, 130 have beentargeted for the first time while rates on 223 items, which were alreadysubject to high regulatory duties, have been further jacked up, according to anotification. These regulatory dutiesare in addition to up to 20% custom duties rates that the federal governmentcharges on their imports.The government has issued a big list of 731items. There was no change in the regulatory duty rates of 375 items.The goods like sunglasses and wrist watcheshave also been brought under the regulatory regime for the first time.
The babywipes have been slapped with 30% regulatory duties for the first time.As many tariff duty of imported dairy,vegetable and fruit products have been targeted to contain the import bill.The country booked $12 billion currentaccount deficit in the last fiscal year due to a historical ever trade deficitof $32billion. The high deficit was because of sharp increase in imports andconstant decline in exports that had plunged to $19.7 billion in the lastfiscal year.However according to international agenciesis of the view that such administrative measures would not yield the desired resultsand the government may have to review its import policies.The government increased the regulatory dutieson dairy products up to 155%.
The products like yogurt, butter, cheese, curdand honey have been targeted with the additional regulatory duties, going up to32% of the import value. As many as 206 vegetables and fruits have also beeneffected with up to 340% increase in their existing duties rates.Thegovernment also brought drastic changes in duty structure of all types ofvehicles and targeted 55 tariff lines with up to 100% additional duties. It hasimposed 15% regulatory duty on new cars of up to 1800cc including the hybridvehicles.in result of increasing regulatory duty the following sectors areeffected.Ø Importers of foreign carsØ Marble industryØ Mobile industry Theseindustries and many other effect in the result of this decision but on theother hand it generates a great business opportunities for the citizens ofPakistan. In following fields it generates the business opportunities.
ü Local automobile industryü Local marble industry ü Increase the demand of local goods ü Local ordance factories ü Local beverage industry ü Electronics industry Local automobile industry Whenthe govt increase the import duty on imported cars .this decision create a lotof opportunities in local cars industry. When the imported cars do not come inthe economy the local industry boost into upper level.
And finally theproduction of local cars. And other automobile products increase this things createa lot of opportunities for the people of Pakistan. The big guns of automobileindustry have increased their sale like Suzuki has an increase of 15% in theirsale of cars in result of this decision. The Faw another local automobileindustry in Pakistan has also increase its sale by 12%.so we can say that whenthese sectors increase their production the job opportunities for people alsoincreased.ultimatley the unemployment rate fall.
Local marble industry When the government has increased theregulatory duty on imported tiles .it create the large number of opportunitiesin the marble industry of Pakistan. The production of local marble has increasedthe local marble companies produce more products to fulfill the needs ofcustomers in Pakistan.
The big companies in Pakistan of marble like mastertiles emoco tiles have great opportunity to generate more profit .thus the saleof master tile increased by20% in current fiscal year. And also emoco tiles hasalso increased their sale by 33%.the decision of increasing in regulatory dutycreate many business opportunities in Pakistan and reduces unemployment.Increased the demand of local goods This decision also create great opportunitiesfor local companies who produce goods and services for the citizens of Pakistan.The local dairy products have increased their demand in Pakistan .
when theimported goods do not come in Pakistan the local goods producers find thisthing healthy for their business hence they increase the production of theirgoods which also create job opportunities for a common man and lab our force get more jobs in this sectorOrdnance industry Local This decision also effect the weapon industrybecause when the imported weapons do not come into the economy this encouragethe local armed factories to produce more weapons to fulfill the needs of country.And when the weapons industry increase their production the people find morejobs in this sector. Ultimately the unemployment reduces.Local beverage industry The decision of increased in regulatory dutyon eatable goods also decreased the supply of imported eatable goods. Thus thelocal beverage industry has boost up and increase its production. The localbeverage companies like government, Sufi and many others companies increasetheir production. The gourment cola sale boost from its total sale of 120000000bottles to 130000000 bottles annually.
so, the career opportunities for citizensin these companies have increased a lot.Electronics industry On increasing the duty on electronic productsthe supply of foreign electronic products has gone to low level. The localelectronics companies find this thing a better chance to improve their positionso the local companies ultimately increase their production of these goods .thebig electronics companies in Pakistan like Haier pel dawlance are producingmore goods to fulfill the needs of people of Pakistan.
And when these companiesincrease their production volume the job opportunities will also increase .andpeople find more jobs thus the rate of unemployment will be at lower level.ConclusionIf we conclude our topic of discussion we findone thing that when the government increase regulatory duty on imported goods.the supply of these goods have gone into a decline position and ultimatelytheir supply in local market also decrease. This create an golden opportunityfor local companies to produce more goods and services to fulfill the needs ofpeople.
in short when increasing duty decline the supply of foreign goods inPakistan it also increase the business opportunities for local industries andcommon people.so we can say that it is harmful in some extend bunt not so muchworst thing because it also generates livelihood for jobless people.