The New Nation - Internet Edition

Staff Reporter

Finance Adviser in the new national budget yesterday proposed to restructure the duty arrangement into a four-tier system of levying duties instead of the existing three-tier one, with further cutbacks on rates for capital goods.

This will help accelerate the development of domestic industries in a bigger way, the Adviser said.

As a measure to offset high prices of consumer goods, the zero-rated duty on foodstuffs as well as fertilizer, medicines and raw cotton will continue as before.

Under the new taxing measures, the import of capital machinery and spare parts will enjoy 3 per cent duty, down from present 5 per cent.

The Government also reduced the duty on basic raw materials from 10 per cent to 7 per cent and on intermediate raw materials from 15 per cent to 12 per cent.

The highest slab for finished products remained unchanged at 25 per cent.

In the interest of quick clearance and simplification of Customs procedure of imported machinery and spares by the export-oriented enterprises, the Finance Adviser proposed to repeal the indemnity bond system and replace it with a concessionary rate of 1 per cent Customs Duty.

"For importation of machinery for textile industries, similar benefit of one-per cent concessionary rate and for importation of some other spares and inputs special rate of 3 per cent in lieu of 5 per cent are proposed."