Govt Reduces Tax on Commercial Vehicles

12 Jan 2023

363

Govt Reduces Tax on Commercial Vehicles

The federal government has made the decision to ease the auto industry by lowering the tax rates on commercial vehicles. The government gives relief to the owners of commercial vehicles by slashing the registration tax in the Excise and Taxation Department, Islamabad's capital territory. The customers can get the latest updates regarding Govt Reduces Tax on Commercial Vehicles.

The government imposed the registration tax on commercial vehicles at the rate of 4% and now it is reduced to 1. Before this, the government lowered the custom duty on assembly kits of small cars having engines of 1000 cc or below. The revenue division has issued the amendment and the duty was reduced from 30% to 15%, which was a little bit more relaxation to the auto industry. The government also reduced the custom duty on the tire tubes from 25% to 16% and the government decreased the custom duty from 32.5% to 30% on the older model cars with 1000 cc in order to give more relief to this industry.

SBP Relieved Imports Restrictions

The State Bank of Pakistan put some restrictions on the import of vehicles and spare parts including CKD kits. Now SBP has given some relief to this industry and lessened the restrictions on the import of various essential items like Completely Knocked Down (CKD). SBP stated that the central bank has withdrawn the curbs on the import of the parts from 02 January 2023. It will ease the way to accept the requests for import restrictions, which have already been submitted to SBP.

It is worth mentioning that SBP issued the circulars in May and July this year and the banks need to take the permission from Foreign Exchange Operations Department of SBP before commencing the process of import transactions of any product. This process creates various complications and it leaves a bad impact on the auto industry because SBP did not open the Letters of Credit (LCs) for CKD Kits, which is necessary for assembling cars in the country.

What is your opinion about the alleviation of registration tax on commercial vehicles? Please share your thoughts in the comment box.

vehicles tax reduced low tax cars in pakistan mid range low tax car mid budget tax in pakistan Tax reduced 2023 pakistan lower tax on vehicles 2023 Pakista

« PREV POST
World’s First Vehicle That Runs without Electricity,Petrol

NEXT POST »
Shahrukh Khan Exhibits Hyundai Ioniq 5 EV in India

Related Auto News Updates