• Exports expected to rise by $5bn by the end of five-year reform period
• Super tax rate cut by 50bps for income slabs between Rs200m and Rs500m

ISLAMABAD: The government has unveiled a comprehensive five-year tariff reform plan aimed at fostering export-led growth and revitalising industrial development through a series of tariff rationalisation measures. The plan includes the gradual elimination of additional customs duties (ACD) and regulatory duties (RD) on over 7,000 tariff lines.

In its first year, the government provided relief worth Rs200 billion in import duties by lowering tax rates and fully eliminating ACD on raw materials. However, estimates from the Federal Board of Revenue (FBR) indicate that increased imports may raise collections from sales tax and withholding tax, partially offsetting the revenue loss from lower import duties.

A key fiscal measure includes a 0.5 percentage point reduction in the super tax rate for income slabs between Rs200 million and Rs500 million — an important bracket for the corporate sector under the income tax regime.

The government expects the tariff........

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