With a few exceptions, all imported goods are liable to customs duties and would accordingly have to be declared to the Customs Department. In order to levy customs duties in accordance with the market oriented economic system and to have a harmonised system of grouping and symbolising goods as practised in most nations of the world, the Tariff Law was promulgated in March 1992 and notifications have been issued. The customs duties levied on the imports of machinery, spare parts and inputs, generally range from 5 per cent to 30 per cent. With regard to export duty, tax is levied on the export of a few commodities. This law was amended in March 199 1.
Commercial tax is a turn over tax levied on goods and services.
The tax is imposed on a wide range of goods and services produced or rendered within the State and the imported goods from abroad. Except for trade, the tax is imposed as an ad valorem single stage tax, that is at the point of sale of producer or manufacturer for domestically produced or manufactured goods. The tax payable for imported goods is to be collected by the Customs Department in the same manner as the customs duty is collected. Regulations are provided to set off input from output tax in case of production and services in order to avoid tax cascading. The tax is levied according to the schedules appended to the said law.