— Reuters/File

What are the new duties imposed on importing luxury cars?

by Pakistan News
0 comment 1 views


— Reuters/File

ISLAMABAD: In line with Finance Minister Miftah Ismail’s announcement to discourage imports, the Federal Board of Revenue (FBR) has notified the imposition of time-bound regulatory duty (RD) and additional customs duty (ACD) on almost 600 to 700 luxury items in the range of 100%-150%.

Miftah, in a press conference about lifting the import ban last week, said that after the imposition of RDs, if a person wants to import a car for Rs300-400 million, which is originally worth Rs60 million, they can — indicating that the government did not have plans to increase imports at this time.

However, according to The News, the government could not jack up RDs and ACDs from 400-600% as earlier claimed by the finance minister earlier.

The increased rates of RDs would remain applicable from August 22, 2022, to February 21, 2023, the FBR notification said.

RD Vehicle
15%-100% 4×4 vehicles Completely Built Up (CBU)
15%-100% New minivans (CBU)
70%-100%  All-terrain vehicles (4×4)
15%-100%  Sport utility vehicles/SUVs (4×4)
5%-100% Vehicle cylinder capacity exceeding 10,00cc but not more than 1,300cc
ACD Vehicle
35%  Sport utility vehicles/SUVs (4×4)

“We are expecting import compression of 60-70%, and it will bring additional revenues to the tune of Rs15 billion on a per annum basis,” FBR chairman Asim Ahmed told The News.

Another FBR official said the Tariff Board had discussed each and every tariff line in detail and recommended maximum RD in the range of 100%. If the government wants to jack up RDs further, it will have to seek permission from Parliament.

The FBR slapped RDs and ACDs on various items, including vehicles, chocolates, electronics, cosmetics, home appliances, furniture, fruits, vegetables, meat, fish, and footwear.

As per an FBR press release, 7% ACD would be applicable on goods falling under tariff slab of 30% and higher slabs as well as slabs of specific rates, except the following which shall be charged at the rate of 2% — goods falling under specified PCT codes and cars, jeeps, light commercial vehicles in CKD condition exceeding 1,000cc and heavy commercial vehicles in CKD condition.

The RD at the rate of 45% would be applicable on the import of military weapons and revolvers and pistols. The RD has been increased from 25%-45% on the import of other arms — for example, spring, air or gas guns and pistols, truncheons.

The RD has been increased from 20%-45% on the import of other firearms and similar devices, which operate by firing an explosive charge.

The board has increased RD on the import of chocolates from 10%-49%; jams, fruit jellies, marmalades, fruit or nut puree, and fruit or nut pastes, obtained by cooking, whether or not containing added sugar or other sweetening matter from 20%-49%.

The FBR has also raised RD from 30%-49% on the import of spectacles, and goggles. It also imposed 47% RD on the import of pianos, including automatic pianos and other string musical instruments.


You may also like

Pakistan Live News
Pakistan’s Most Trusted, Source of News. Pakistan Live News is Pakistan’s most trusted website for breaking news and key developments.

Newsletter

Latest News

@2022 – Pakistan Live News – All Right Reserved.