According to sources, the federal government has decided to significantly reduce import duties under the 5-year National Tariff Policy 2025-30 to promote economic activities in the country and increase competitiveness in the trade system.
In the 5-year National Tariff Policy 2025-30, customs, regulatory, additional duties will be significantly reduced in phases. The main objective of this policy is to reduce the average tariff from 20.19 percent to 9.70 percent. This move is expected to cause a loss of Rs 143 billion in revenue.
Sources said that according to parliamentary circles, this move will increase competition in the market and reduce import costs. Officials said that it is proposed to limit customs duty to a maximum of 15 percent in 5 years. Similarly, a plan is included to reduce additional customs duty from 6 percent to zero gradually.
In addition, it has been recommended to limit the maximum rate of regulatory duty to 20 percent and eliminate it in phases. Sources said that the target is to reduce the average rate of import duty to 16.56 percent in 5 years. The Engineering Development Board has recommended uniform tariff on local and imported vehicles.
Under the new policy, it has been proposed to provide equal opportunities for local industry and the import market. These reforms are an important step taken to bring the tariff structure in line with global standards, which aims to modernize domestic industries and ensure transparency in the trade system.