Pakistan Lifts Import Duty on Platinum, Palladium, Diamonds

Pakistan has exempted the import and local supply of platinum, palladium, diamonds and precious stones from 16 per cent general sales tax to reduce the cost of production for exports in gems and jewellery sector.

It was noticed in the trade policy framework 2009-12 approval process at the special meeting of the cabinet that to promote gems and jewellery sector, the cabinet in trade policy 2008, approved waiver of customs duties and sales tax on import of gold, diamonds, silver, platinum, palladium and precious stones.

The waiver was not extended to pearls and other synthetic or reconstructed precious or semi precious stones though these are increasingly being used in jewellery production.

Despite the cabinet's decision, FBR didn't comprehensively implement the decision.

In the trade policy 2009-10 it has been decided to exempt natural pearls and other synthetic or reconstructed precious or semi-precious stones from customs duty and sales tax.

It was also announced in the policy that implementation of the cabinet's decision to be expedited.

Keeping in view the instructions of the federal cabinet, the government has allowed the exemption from GST on import and local supply of platinum, palladium, diamonds and precious stones. However, customs duty exemption is still awaited in the import platinum, palladium, diamonds and precious stones.