The Tax Reduction Arrangement Of The Second Phase Protocol Of China Pakistan FTA Will Be Implemented From January 1, 2020

On December 1, 2019, the protocol between the government of the people's Republic of China and the government of the Islamic Republic of Pakistan on the amendment of the free trade agreement (hereinafter referred to as the protocol) entered into force. At present, the domestic tax reduction procedures of the two countries will be completed from January 2020.

According to the provisions of the protocol, after the implementation of the tax reduction arrangement, the proportion of zero tariff product taxes between China and Pakistan will gradually increase from 35% to 75%. In addition, the two sides will also implement a 20% partial tax reduction on other products that account for 5% of their respective tax items. Specific tax reduction arrangements can be found in China free trade zone service network.

The implementation of the tax reduction arrangement under the protocol will further expand the market opening between the two countries, enable enterprises and consumers of the two countries to enjoy more preferential treatment, and promote the construction of China Pakistan Free Trade Zone to enter a new stage.