The Federal Board of Revenue (FBR), at the time of passage of Finance Bill, decided to extend the time period up to March 31, 2023 to inflict regulatory duties (RDs) and Additional Customs Duties (ACDs) on the import of over 600 luxury and non-essential items including mainly Vehicles and Chocolates/electronics/cosmetics, etc.
The FBR will issue new notifications to enhance the time period of additional customs duties (ACDs) and regulatory duties (RDs) on the import of luxury and non-essential items.
Earlier, on August 22, 2022, the FBR issued SRO1571(I)/2022 and SRO1572(I)/2022 to increase regulatory duties and additional customs duty on the import of luxury and non-essential items. Regulatory duties under SRO1571(I)/2022 remained applicable till February 21, 2023. Whilst RD on items falling under the serial number 554 of the SRO.1571(I)/2022 remained applicable till November 1, 2022.
In august 2022, Regulatory duties on cars larger than 1000cc were increased to 100 percent against old rate of 15%. Meaning, duties imposed on CBU cars observed a hike of 85 percent. Resultantly, car prices marked a new high – local market witnessed a new price hike series.
Additional Custom Duties
The FBR has also imposed 35 percent additional custom duty on the vehicles falling 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
- 9000 — Vehicle included SRO.1517(I)/2022.
What do you think about the extended time period of regulatory duty and additional customs duties imposed on luxury and non-essential items. including vehicles? Drop your thoughts in the comments section.
