Originally published at: https://www.pakwheels.com/blog/rd-removal-17-luxury-evs-imported-under-invoiced/
On November 22, 2022, Regulatory Duty (RD) on Electric Vehicles (EVs) was expiration under SRO1571(I)/2022. FBR had increased the RD to 100% from 0%. The notification by FBR read that the hike observed in the regulatory duty imposed on electric vehicles "shall take effect on and from the 22nd day of August 2022 till the 21st day of November 2022." And the government decided not to expand the duty further.
Then there were reports that the RD would be re-imposed after a few days, and we did a detailed blog on whether it benefits the elite. Reportedly, our sources and experts were right because new data shared by economist Ali Khizar proves that few have been benefited after the removal of duty.
https://twitter.com/AliKhizar/status/1603314531811336194
Value of Luxury EVs
As per Khizar, 100% regulatory duty on EVs expired on November 21, and 17 electric vehicles (EVs) were imported (custom declaration) in the last nine days of November. "Most of these EVs are Merc EQE/EQS and BMW IX3 and Nissan Leaf," he wrote. The economist believes this cannot be a coincidence of importing the next day of duty waiver- it must be preplanned.
Sharing the details about these luxury cars, he wrote the landed price (pre-tax) range of these EVs is $50,000-125,000 and some of these cars of over $100,000 value have assessed value (& declared value) of below $10,000.
The economist believes that there could be more cars imported in December 2022. "Rome is burning while kings and princes are busy buying EVs at under-declared value," he concluded.
https://twitter.com/AliKhizar/status/1603314534281842688
Earlier, the same economist shared the details of the import of luxury and expensive vehicles in Pakistan amid "belt-tightening" claims from the government. You can read about that imports in our separate blog here. If the information is correct and the luxury cars have been imported under-invoiced, then the issue must be investigated at a higher level because such policies will further worsen the economic condition of the country.
What is your take on the import of these luxury EVs? Share your thoughts in the comments section.
