The Additional Customs Duty (ACD ) was passed by the Pakistani government in 2020 in an effort to raise additional revenue for the country. The act imposes an additional customs duty of 2%, 4%, or 7% on goods imported into Pakistan.
The ACD has been met with mixed reactions. Some people believe that it is a necessary measure to raise revenue for the government, while others believe that it will hurt the economy by making goods more expensive.
There are a number of ways in which the ACD can benefit the economy. First, it can help to raise revenue for the government. The government can use this revenue to fund important programs, such as education, healthcare, and infrastructure.
Second, the ACD can help to protect domestic industries. By making imported goods more expensive, the ACD can make it more difficult for foreign companies to compete with domestic companies. This can help to create jobs and boost the economy.
Third, the ACD can help to reduce the trade deficit. The trade deficit is the difference between the value of goods that Pakistan imports and the value of goods that Pakistan exports. The ACD can help to reduce the trade deficit by making imported goods more expensive. This can help to boost the domestic economy and make Pakistan more competitive in the global market.
Of course, there are also some potential drawbacks to the ACD . First, it can make goods more expensive for consumers. This can lead to a decrease in demand for goods, which can hurt businesses and the economy.
Second, the ACD can lead to smuggling. If the ACD is too high, people may try to smuggle goods into Pakistan illegally to avoid paying the duty. This can hurt the government’s revenue and make it more difficult to enforce the law.
Overall, the ACD has the potential to benefit the Pakistani economy. However, it is important to carefully consider the potential drawbacks of the act before implementing it.