The government of Pakistan ended the import ban imposed on luxury and non-essential items with a signal of whooping increase in regulatory duty. And two days ago, we witnessed the same what was promised.
The Federal Minister of Finance, Miftah Ismail, informed that regulatory duty on imported cars (CBU) has observed a massive increase of 85 percent.
In a bid to exhibit the impact of an increase in regulatory duty, we did some calculations and brought here the new figures.
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Regulatory Duty (RD) Raised To 100%
Regulatory Duty (RD) Raised To 100%In recent action, the Federal Board of Revenue (FBR) has increased the regulatory duties (RD) and additional customs duties (ACD) on the import of non-essential and luxury items, including vehicles (CBU).
As per reports, regulatory duties on cars larger than 1000cc are increased to 100 percent, previously 15 percent. Meaning, duties imposed on CBU cars observed a hike of 85 percent. Resultantly, car prices would mark a new high – local market may witness a new price hike series.
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
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.
Earlier, in a press conference, finance minister Miftah Ismail announced an end to the import ban on non-essential and luxury items, including imported cars.
What do you think about the new regulatory duty imposed on imported cars? Drop your thoughts in the comments section.
When you are writing the model 2019, is it the year of registry or the year the car was made in? The reason is that the last time I checked, a 2019 Mira cost about PKR 2.2 to 2.5million.
Regardless, the difference good, the only thing now that remains to be done is to raise the duties on differentiated bases that is to say a higher rate for 1300 CC, much higher rate for over 1501 CC and even higher rate for 1800 CC and over.
Moreover, the government should disallow car financing of any sort because it is unsustainable that a man who does not has means is able to buy cars through loan and end up creating a liquidity crises.
Federal government must allow import of 660 cc Cars and vans without regularity duties and also relaxation in documentation processes fir these small cars for overseas Pakistanis