Pakistan made no changes in the duty structure pertaining to imported scrap in its annual Budget for financial year 2022-23 (FY23), announced on 10 June, 2022.
Tariff structure
While making no change in the duty structure pertaining to imported scrap, the government retained the existing tariff structure, which is based on a cascading principle, ie, lower duty rates on raw materials and higher duty rates on finished products.
Budget highlights
- To encourage the vendor industry, the regulatory duty (RD) has been reduced on imports of case hardening steel from 30% to 20%.
- VAT has been imposed on compressor scrap, motor scrap and copper cutting scrap even when imported by manufacturers.
- Withdrawal of RD exemption is available on imports of high carbon wire rods.
Not many changes in the duty structure have been seen in the Budget, highlighted local sources.
Finance Minister Miftah Ismail, while presenting the country’s Budget said: “Economic stability is our foremost priority … we have to set strong foundations of economic development that is based on sustainable growth.”
Pakistan’s crude steel production rebounded from 3.8 mnt in 2020 to 5.3 mnt in 2021, according to WSA.
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