The federal cabinet has approved the first-ever National Tariff Policy (NTP) developed by the Commerce Division after extensive consultations with the stakeholders.
The policy is aimed at ensuring transparency, predictability and institutionalizing the entire tariff structure in the country. The draft, approved by the prime minister, would be presented to the federal cabinet for its consideration and approval, said a statement issued by the Prime Minister’s Office.
PM Khan during the meeting said for the first time the current account deficit has decreased in the country due to measures taken by the government’s economic team.
Prime Minister Imran Khan, said that the import tariffs were traditionally employed as a revenue generation tool, which was why reliance on import tariffs for revenue collection had increased.
“In accordance with the reform agenda of the government, the economic policy paradigm is now being realigned to leverage tariffs for industrial development,” he added.
Policy principles include tariff as a trade policy instrument, reducing exemptions and concessions, cascading tariff structures with the stage of processing of a product, strategic protection to domestic industry and competitive import substitution.
The policy will be implemented through a Tariff Policy Board (TPB) chaired by the commerce minister/adviser, with the minister for industries & production, finance secretary, revenue secretary, FBR chairman, commerce secretary, Board of Investment secretary, and NTC chairman as its members.
The new policy also envisages establishment of a tariff policy centre in the Ministry of Commerce in order to frame proposals for improving the tariff structure in line with the objectives of the National Tariff Policy
