The government has decided to significantly reduce import duties

The government has decided to significantly reduce import duties to boost economic activities.

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.

Under this policy, customs, regulatory and additional duties will be reduced in phases. Its main objective 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 it is proposed to limit customs duty to a maximum of 15 percent in 5 years. The plan includes reducing additional customs duty from 6 percent to zero gradually. It has also been recommended to limit the maximum rate of regulatory duty to 20 percent and eliminate it in phases.

In addition, the Engineering Development Board has recommended uniform tariffs on local and imported vehicles.

The new policy proposes 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 trading system.