Duties on import of rice, diesel slashed

The government has cut duties on rice and diesel imports to ease the burden on consumers under inflationary pressure due to recent fuel price hikes and rice price spirals.

The National Board of Revenue (NBR) on Sunday cut import tariffs on rice further by 10 percentage points to over 15 percent to facilitate imports of rice to stabilise the market volatility.

It also waived the entire advance tax on diesel, aiming to cut the import cost of the key gasoline item. Furthermore, import duties were reduced from 10 percent to 5 percent.

The reduced import tariff would remain effective until December 31, 2022.

The rice duty was slashed two months after the customs authorities slashed import duty for the staple to over 25 percent from 62.5 percent to encourage imports and increase supply so that local prices come down.

However, importers did not respond vigorously to the rice imports due to increased costs resulting from the rising cost of the US dollar.

In its circular, NBR said the importers would be able to bring rice on payment of only 5 percent regulatory duty along with 5 percent Advance Tax and 5 percent advance income tax.

Total tax incidence will be 15.25 percent following the tariff cut, said, officials.

Importers with permission from the food ministry will be able to import rice by paying the duty until December 31, 2022. Previously, the scope was given for the period until October 31st of this year.

The NBR move comes amid demand from various quarters after the government hiked prices of petroleum by up to 52 percent from early this month to reduce the pressure of subsidy on the state coffer.