Three months after the restrictions were put in place, the import ban will be lifted, according to Finance Minister Miftah Ismail, as the nation’s economy takes a breather following encouraging signs.
In a press conference with members of the economic team, the finance minister stated that the International Monetary Fund (IMF) had demanded that the import restriction on non-luxury goods be relaxed.
According to Miftah Ismail, the administration found it easier to import necessities for the general populace after the import prohibition.
“Do we buy cars or grain with those dollars? Do we buy mobile phones or pulses? Do we buy oil and ghee or home appliances? Our choice becomes very simple,” he said.
Therefore, the government had imposed a ban on the import of non-essential items, the minister said. “However, because it is a requirement of the international community that a ban is not imposed, we are removing it on all items,” he explained.
But at the same time, the government would be imposing heavy regulatory duties (RDs) on these items, he said, adding that as a result these items would not be imported as “finished goods”.
“We will try to impose thrice the existing RDs the maximum amount of permissible RDs,” the minister said.
He claimed that the government’s RDs in some industries would range from 400 to 600 percent because the nation lacked foreign currency to buy things like Mercedes vehicles.
“With my limited resources, I will prioritize flour, wheat, cotton, and edible oil instead of iPhones and cars. We will remove the bans but impose prohibitive duties in the form of RDs, customs duties, and sales tax so their import does not rise,” he said.
The minister stated in response to a question that duties on imported beef and salmon, completely built-up (CBU) cars and appliances, and other luxuries would be raised.
He clarified that the government’s goal was not to promote the entry of such goods but rather to adhere to the terms of the IMF and other international accords while restricting imports.
The minister claimed that the government had abided by the IMF’s requirement that it not provide unfunded subsidies.
He declared that a law would be passed by the government to eliminate the fixed tax on small business owners.
The variable taxes, which include the 7.5 percent income tax and the 5 percent sales tax, will still apply to all traders for the ensuing three months, he said.
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