This fiscals budget in Pakistan signals positive changes for the petrochemical industry.
The budget will usher in protectionist measures by an increase in customs duty on the import of 1,870 items, and imposing taxes on 16 other items proposed in the Budget 2005-06.
A proposal for an increased slab of 15% besides the 4 existing bands of 5%, 10%, 20% and 25% has been envisaged for the local industry and trade to prosper. In a bid to rationalize tariffs, about 190 items (tariff lines) would be kept at 15%.
As per Pakistan Customs Tariff (2005-06), the following duty reduction have been proposed:
on MEG (polyester) from 20% to 0%
on fibre from 10-25% to 3%
on polyester chip from 15% to 6.5%
In the chemical and allied industry, duty reduction to the tune of 25% to 20%, 20% to 15% and 10% to 5% has been proposed for about 416 items.
11-Jun-05 
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