Regulatory Duties on the Imported Cars are increased by 100%

Jawad

25 Aug 2022

815

Regulatory Duties on the Imported Cars are increased by 100%

As per government rules the regulatory duties to the import of vehicles in Pakistan has been increased. The government is facing financial crises and in order to avert the fiscal slippages, Federal board of Revenue has increased the regulatory duties on the import on new vehicles. It is reported that government decided to double the previous regulatory duties. The customers need to know that Regulatory Duties on the Imported Cars are increased by 100%.

Increase in the Regulatory Duty (RD)

There are reports that the regulatory duties of cars larger than 1000cc are increased to 100 percent, which had previously been 15 percent. It means that the duties imposed on the CBU cars had a price hike of 85 percent. As a result there will be rise in the price of new cars.

The Federal Board of Revenue has issued SRO1571(I)/2022 under which the increased rate of regulatory duty would be applicable from August 22, 2022 to February 2023.

Additional Custom Duties

35 percent additional custom duty has been imposed by the FBR on the vehicles under the following PCT codes:

• 2323- Sport utility vehicles- SUVs 4*4

• 2329- Sedans and Hatchbacks

• 2490- diesel-powered vehicles

• 3223- CKD or SKD kits for SUVs

• 3225- all terrain vehicles (4*4)

• 3229- Commercial vehicles

• 3390- Other vehicles with internal combustion engines or electric motor

• 90000- Vehicle included the SRO.1517(I)/2022.

Earlier in a press conference. The finance minister has announced to end the import ban on non essential and luxury items including imported cars.

Car Import Ban been Ended by the Govt BUT

The finance minister has said that the government has decided to end the band as this is international requirement, but it is to noted that three times higher regulatory duty will be applied on non-essential imported items.

The finance minister has said that regulatory duties would be between 400-600 percent because we do not have enough foreign exchange to spend upon luxury cars.

“Even now if any person wants to import a car that has originally a cost of Rs. 60 million and after the regulatory duties it will cost Rs 300-400 million, they can import it.”

Heavy regulatory duty will be imposed on CBU units which in turn create a new fuss in the local market, price of the imported cars will again have a rise in the market.

Imported Cars Imported Cars Regulatory Duties Imported Cars Prices Imported cars in pakistan

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