Cars and jeeps of 1800-cc engine capacity and above are mostly luxury vehicles, which are liable to duty @ 90 percent. In order to discourage the import of these vehicles, duty rates have been increased from 90 percent to 100 percent. Fixed duty/tax rates on old and used cars/jeeps notified vide SRO 577(1)12005 have also been increased by 10 percent through an amending SRO 560(1)/2008 of June 11, 2008.
Duty rate on motor cycles in CBU condition has been reduced from 80 percent to 70 percent along with readjustments in duty rates on parts. Duty rate on CKD kits of cars has been reduced from 35 percent to 32.5 percent. These measures have been implemented through amendments in SRO 656(1)12006 vide amending SRO 563(1)12008 dated 11.6.2008.
The collectors of customs have reported to the FBR that clearance of over 400 seized/confiscated vehicles was held up because of contravention of law and procedure. Therefore, those vehicles could not be released even against payment of leviable duty/taxes and redemption fine @ 30 percent. The existing adjudication SRO does not allow the same. The government has decided to resolve this issue by allowing a one time opportunity to get the vehicles cleared on payment of leviable duty/taxes plus 30 percent redemption fine This decision shall apply to those vehicles only which have already been seized/ confiscated on or before May 31, 2008 and the option is availed up to June 30, 2008. This measure has been implemented while amending existing SRO.481(I)/2007 vide SRO 588(I)2008.