The National Board of Revenue (NBR) has reduced import duties on onion, potato and pesticides to rein in prices of the commodities in the local market.
The waiver on onion and potato would continue until November 30, 2024, said a statement on Thursday.
The customs wing has issued three separate gazette notifications in this regard on Wednesday.
The NBR has waived 5.0 per cent regulatory duty on import of onion, reduced customs duty on import of potato to 15 per cent from 25 per cent earlier, and waived regulatory duty and VAT on import of pesticides keeping only a customs duty of 5.0 per cent.
Following requests of the stakeholders and relevant ministries, the customs have found it necessary to cut the duties considering the flood situation and disruption in supply chain due to mass uprising.
"Local farmers are able to meet the lion's share of domestic consumption of potato and onion. Lower rate of import duties would discourage them from producing the vital crops. So the NBR has set a deadline for the tax benefits," said the statement.
The NBR vowed to continue the fiscal incentives to the farmers in the long run. However, it is optimistic about a positive impact of tax reduction on the prices of onion and potato.
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