Flash Note: Pakistan Economy: FBR raises Regulatory Duties to promote Import Substitution
- Federal Board of Revenue (FBR) has issued a new SRO named as “S.R.O. 640 (I)/2018”, where Regulatory Duty (RD) on various items increased by 2-10% to curb imports and promote import substitution. This new SRO (640-2018) is in supersession of earlier SRO 1035(I)/2017.
- Among all items, RD on glass items (Float Glass & Other Glass) is imposed up to 10%, where import value of these items (PCT code wise) ranges from US$10mn to US$50mn. By this move, we believe locally listed companies like Tariq Glass (TGL), and Ghani Glass (GGL) would stand out as major beneficiaries.
- Among other items, duties on Mineral waters, Calcium Carbide, Hydrogen per oxide, Razors, Safety Blades and Chlorodifluoromethane are increased by 5-10%. However, RD on Sulphonic acid is reduced from 20% to 10%.
- To note, import duties on Yarn, PVC resin, and steels products remained unchanged.
- The revenue measures of these additional duties is reported at around Rs25-28bn. However, we do not expect this measure to significantly curb country imports.
Topline Securities is one of the fastest-growing brokerage houses in Pakistan. It has strong Equity Brokerage, Economic/ Equity Research, Commodity Trading and Corporate Finance & Advisory functions.
Topline Securities has been endowed with numerous awards by renowned international financial organizations. The highlights of which consists of the award for ‘Best Local Brokerage House of Pakistan’ by Asiamoney Brokers Poll (the largest Asia-focused equity services provider poll) in 2016 and ‘Best Equity Brokerage House’ by CFA Society Pakistan in 2015.
Previously, Topline Securities held the title for ‘Best Brokerage House’ for 4 consecutive years (2011-2014) by Asiamoney Brokers Poll. Other awards include the ‘Best Salesperson’ award by Asiamoney for 6 consecutive years (2011-2016), the ‘Arabia Fast Growth 500’ award and ‘Pakistan Fast Growth 100’ award in 2012 and 2013 by AllWorld Network.
JCR-VIS, a credit rating agency providing independent rating services in Pakistan has assigned initial rating of “A-2” for short term and “A” for long term to Topline Securities. Topline Securities is registered as Underwriter, Book Runner and Research Entity with Securities & Exchange Commission of Pakistan (SECP).
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