KARACHI: Faiz Ahmed, secretary custom tariff, through a notification, has directed customs officials to charge customs duty on new and used cars under the new Custom General Order (CGO) 2004 issued on July 9.
The notification said that value price of the imported new vehicles of Japanese and European models would be based upon domestic models instead of the export models.
The notification was received by custom officials on August 5, under which they are directed “to assess all news vehicles imported under personal baggage and gift schemes directly from manufacturers and other than, in accordance with the new CGO.”
The notification of the customs tariff authority has enhanced prices of new imported vehicles into the country, as local prices of vehicles are much higher than Japan and European vehicles.
On the other hand, car dealers are still waiting the decision of the Senate’s committee, headed by Senator Ahmed Ali, who is reviewing new CGO of the Central Board of Revenue (CBR) on the directive of the federal government.
“This notification of the customs tariff has by-passed Senate’s committee and further increased cost of new imported vehicles,” said H M Shahzad, chairman All Pakistan Motor Dealers Association (APMDA).
He said the federal government has constituted a committee under the supervision of Senator Ahmed Ali and asked the committee to give report within a week. But before the committee’s decision, the CBR ahs issued another notification directing the custom officials to implement CGO.
He said approximately 400 to 450 vehicles imported by motor dealers are parked at different ports of the country, while importers are bearing demurrage cost of around Rs 300,000 per day.
Meanwhile, authorized dealers of car assemblers and manufacturers have increased premium to Rs 45,000 on Suzuki Mehran 800 cc, Rs 74,000 on Suzuki Cultus 1000 cc, and Rs 40,000 on Suzuki Bolan Van 800 cc.
Toyota dealers are taking Rs 200,000 on Toyota Corolla D Saloon 2000 cc, Rs 130,000 on Toyota Corolla GLI 1300 cc, Rs 110,000 on Toyota Corolla XLI 1300 cc, Rs 85,000 on Daihatsu Coure A/C 1000 cc.
Likewise, Honda dealers are charging premium of Rs 95,000 on Honda City 1300 cc, Rs 110,000 on Honda Civic Exi 1500 cc, Rs 120,000 on Honda Civic VTI Auto 1600 cc.
Dealers of Dewan Motors are charging Rs 31,000 premium on Hyundai Shehzor 2600 cc, Rs 30,000 on Hyundai Santro 1000 cc, and Rs 35,000 on Sportage Jeep 2600 cc.