The auto industry is currently abuzz with the reversal of Regulatory Duty on import of used cars. A couple of days ago, we told you that Federal Board of Revenue (FBR) has not extended the SRO after March 31, 2023. It is essential to mention that the government imposed 100% RD on these cars in August 2022 under SRO1571(I)/2022. As per the SRO, the RD was imposed till February 2023, but the government pushed the deadline to March 31, 2023.
After the end of the deadline, the RD has gone back to the rate before August 22, but as usual it caused confusion among the people as so-called market experts started saying that the RD has been removed totally from all cars and the rates will be down significantly. But is is not true.
RD on Used Cars – Truth
If you look at the old SRO of FBR, you will come to know that there was no RD on used cars upto 1800cc, while there was 70% on used cars above 1800cc. It means that there will be 0% RD on used cars up to 1800cc, but there is still 70% on used cars above 1800cc.
We have always tried to bring the authentic news to you, and if you still facing some confusion, here is it explanation by Suneel Munj.
Furthermore, current tax and duties net on all the cars is below:
And these are taxes and duties on HEV cars:
Meanwhile, revised RD on new cars is as following:
- New 4×4 (15%)
- New Mini Vans (15%)
- New 1001cc to 1300cc cars (15%)
- New SUVs (15%)
- New SUVs 4×4 (90%)
Hopefully, this explanation will be helpful for you, especially if you are planning to buy or import a used car in the coming days.
