The government recently changed its decision about cutting import taxes. Originally, they planned to reduce or remove taxes on nearly 2,000 products next year. This decision aimed to help businesses by lowering costs. However, after careful review, the government decided to reverse the cuts on 285 of those products.
These changes will mostly affect finished goods—items that are already made and sold in the local market. The government realized that removing taxes on these goods would hurt the Pakistani industries that make them. To protect local businesses and jobs, they decided to keep some taxes in place and slow down the full reduction plan.
Under the new plan, the average tax rate will be reduced more gradually. Instead of a quick drop, the government will slowly lower taxes over five years—from about 20% now toward roughly 10%. This slower pace helps avoid sudden competition from cheaper imports, especially from China.
Officials say this adjustment will also help the government keep needed revenue. The initial plan warned of losing about Rs200 billion in tax money. But with this partial reversal, losses will be less—around Rs174 billion instead.
Local business owners welcomed the decision. They had warned that the complete removal of taxes would force many businesses to close. The government is now preparing to officially announce the new tax rates. These changes will soon be published by the tax authority for businesses and consumers to follow.
In short, the government still wants to reduce import taxes, but it is doing so slowly. This careful approach aims to protect jobs, support local industries, and maintain steady income for public services.