To end duty exemptions on import of Covid-19 related machinery and material the commerce divison is working to implement the plan as the country receives another batch of 500,000 vaccine doses gifted by the Chinese government.
A senior commerce ministry official told The Express Tribune that the cabinet had tasked the ministry to work on removing exemptions on import of Covid-related material in bid to protect the local industry.
At present, the local industry is manufacturing Covid-related equipment and material and paying 17% general sales tax. The zero-duty regime for the import of Covid-related machinery had made the local products uncompetitive.
The government had exempted 61 diagnostic support and personal protective equipment (PPEs) from all duties and taxes in March last year. However, the local industry started manufacturing the equipment, the cabinet meeting held last week was informed.
Because of the local production, a cabinet minister called for contribution in kind, instead of cash, to the Covid related funds. The ministers also pointed out that the zero duty on import of Covid-19 related equipment had made the local products uncompetitive.
They said that government should review the zero-duty regime. The local manufacturers are paying 17% sales tax, which puts them at a disadvantageous position. Following discussion, the cabinet has directed the commerce division to review the proposal and submit its recommendations.
