Federal Board of Revenue (FBR) has imposed additional customs duty (ACD) on several imported items, including car parts. According to a new SRO 1930(1) 2022 issued by FBR yesterday, the duty would now be imposed on importing seat parts made of foam, head/armrests, and seat frames for cars.
ACD on Car Spare Parts
The new ACD will also be imposed on air cleaner hoses and water cleaning hoses (except turbo system hoses) for vehicles falling under the specified Pakistan Customs Tariff heading. As per FBR, the other items coming under this new SRO are:
- Fan pulleys for vehicles of certain PCT headings
- Rear combination/backup lamps
- Rear turning indicators
- Plough lamps
- Reverse/parking lights for vehicles
- Ceiling/room lamps for vehicles
- Wiring/cable sets for vehicles of specified PCT headings
FBR will also impose new ACD on the following items:
- Brake drums
- Air Vacuum tanks
- Lever assembly for parking/hand brakes (4×2 vehicles only)
- Built-up drive axles with hub
- Wheels hubs of axles
- Dust protection caps for wheel hubs
- Road wheels (excluding casted)
- Rims, Discs, caps, ornaments, and weights for vehicles
- Pins for shock absorbers (4×2 vehicles)
- Radiators other than aluminum cores for vehicles for certain PCT headings
- Steering wheels (non-foamed)
- Cover steering shafts
This additional ACD will further impact the import of car spare parts. The auto industry is already facing serious issues due to import curbs on CKD kits by the State Bank of Pakistan (SBP). Now we have to see whether this new ACD will lead to another car price hike or not, but it will surely further burden the auto industry.
Meanwhile, the dollar value is again increasing against the Pakistani rupee, and the hopes of car price reductions seem to be dashed. Overall, the near future of the auto industry is not painting a happy picture.
What do you think about this new ACD? Do you think it would impact car prices? Please share your thoughts in the comments section.
