Islamabad: The federal government has imposed a ban on the import of luxury products to save much-needed revenue and to arrest the current account deficit (CAD), a news source reported on May 19. The tax ban will affect 33 product categories and will save up to USD 500 million monthly in terms of the import of these products.
Reportedly, the decision to ban imports of luxury items was announced by the government amidst a widening pay gap and the falling value of the rupee against greenbacks.
In a public announcement on Thursday, Prime Minister Shehbaz Sharif said in a Tweet that “ “My decision to ban the import of luxury items will save the country precious foreign exchange. We will practice austerity & financially stronger people must lead in this effort so that the less privileged among us do not have to bear this burden. ”
"My decision to ban import of luxury items will save the country precious foreign exchange. We will practice austerity & financially stronger people must lead in this effort so that the less privileged among us do not have to bear this burden."
Mobile phones and completely knocked-down (CKD) items, however, are exempt from the import ban. The government has decided instead to increase tariffs on both items to discourage their import. The decision regarding the new tariffs will be announced In the second half of Friday (May 20).
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