ISLAMABAD: According to the latest updates on the Finance Bill 2023-24, significant changes have been unveiled. One notable change is the elimination of customs duty on raw materials used in the production of solar panels. Similarly, customs duty has also been abolished on raw materials used in the manufacturing of solar panel batteries.
Abolition of Duties on Solar Panel Machinery and Diaper Raw Materials
Furthermore, the finance bill specifies that the duty on importing solar panel machinery and raw materials for solar panel inverters has been eliminated. Additionally, the bill includes the abolition of duty on the import of raw materials for diaper production and confirms that there will be no tax increase on essential imports.
Tax Exemption for Machinery Imports in FATA and Reduction in Duties on Raw Materials
Moreover, the tax exemption for machinery imports in the Federally Administered Tribal Areas (FATA) will continue until June 30, 2024. The bill also highlights the elimination of duty on raw materials related to the production of thinner within the country. Additionally, there will be a reduction in duty for various raw materials used in polyester manufacturing.
Abolition of Duties in the Mineral and Textile Sectors
In addition to the aforementioned changes, the finance bill abolishes duty on machinery imports in the mineral sector, removes customs duty on dyes and related raw materials in the textile sector, and reduces the duty on Completely Knocked Down (CKD) items from 10% to 5%.
Duty-Free Imports in IT Sector and Abolition of Rice Mill Machinery Duty
Furthermore, the bill permits duty-free import of IT-related goods and offers discounts on import duties for flavoring powders in the food and beverage industry. Duty on rice mill machinery has also been abolished.
Approval of Federal Development Program Worth Rs. 1150 Billion
In another development, the Federal Cabinet has granted approval for the Federal Development Program (PSDP) valued at Rs. 1150 billion during the budget session. The allocation includes Rs. 491.3 billion for infrastructure, Rs. 86.4 billion for the energy sector, and Rs. 263.6 billion for the transport and communication sector.
Allocations for Water Sector, Education, and Special Areas
Moreover, the cabinet has approved Rs. 99.8 billion for reservoirs and the water sector, as well as Rs. 41.5 billion for physical planning and construction. The education and higher education sector has been allocated Rs. 81.9 billion, while special areas, Azad Jammu and Kashmir, Gilgit-Baltistan, and the districts merged with Khyber Pakhtunkhwa will receive Rs. 60.9 billion and Rs. 57 billion, respectively.