The Federal Board of Revenue (FBR) has announced a new set of taxes on a long list of goods, including imported vehicles. Under the new Statutory Regulatory Order (SRO) 504(I)/2017, up to 60% ad valorem regulatory duty has been placed on the import of new and old cars, jeeps and sport utility vehicles (SUVs).
Yesterday’s SRO made official the regulatory duty rates that were announced as part of the Federal Budget 2017-18 on May 26th.
FBR has issued the notification for the regulatory duty on ad valorem basis (in proportion to the estimated value of the goods) for over 500 items. With this step, the government aims to improve revenue collection by charging more taxes from the citizens on import of “non-essential and luxury” products.
It is estimated that this step will increase revenues by Rs. 10 billion.
The latest SRO from the FBR amends the previous one – SRO 482(I)/2009 – which was issued back in 2009.
The list below mentions the regulatory duty on different types of vehicles along with their PCT codes:
- New SUVs with engine capacity between 1801cc-3000cc – 50% duty (8703.2323)
- Used SUVs with engine capacity between 1801cc-3000cc – 60% duty (8703.2323)
- New cars and jeeps with engine capacity between 1801cc-3000cc – 50% duty (8703.2329)
- Used cars and jeeps with engine capacity between 1801cc-3000cc – 60% duty (8703.2329)
- New cars and jeeps with engine capacity over 3000cc – 50% duty (8703.2490)
- Used cars and jeeps with engine capacity over 3000cc – 60% duty (8703.2490)
- New SUVs with engine capacity over 2000cc – 50% duty (8703.3223)
- Used SUVs with engine capacity over 2000cc – 60% duty (8703.3223)
- New All Terrain Vehicles (SBU) – 50% duty (8703.3225)
- Used All Terrain Vehicles (SBU) – 50% duty (8703.3225)
- New cars and jeeps with engine capacity over 2000cc – 50% duty (8703.3229)
- Used cars and jeeps with engine capacity over 2000cc – 60% duty (8703.3229)
- New cars and jeeps with engine capacity over 2500cc – 50% duty (8703.3390)
- Used cars and jeeps with engine capacity over 2500cc – 60% duty (8703.3390)
- Other types of new vehicles – 50% duty (8703.9090)
- Other types of used vehicles – 60% duty (8703.9090)
Note: The above listed regulatory duties are not applicable on electric hybrid vehicles.
In April, the government increased the customs valuations rate of imported vehicles with engine displacements of 1,800cc and above which could raise the price of such vehicles by Rs. 200,000 to Rs. 1.5 million. All Pakistan Motor Dealers Association (APMDA) is already protesting against the increased customs valuations rate on imported vehicles.
With the higher regulatory duty, imported vehicles will get more expensive, leaving car buyers with no other option but to pay high premiums on low quality local vehicles with months of delay in delivery.
A similar increase in duties has been announced for tobacco products, ceramics, firearms and bathroom equipment.
The SRO notification can be viewed here.
To Support PAK SUZUKI !
That’s Nawaz Sharif, Shairrrrrrrrr!
Fuck that bitch!!!
Vehicles above 1800cc only
Nope. Its for all vehicles. See the last two bullets in the article.
Does a 660cc car comes under “non-essential and luxury”?
To support crap local manufacturers
strategies to raise revenue by this way is creeepppppp! Do something appreciable. bring money from leakers that will be enough. n there will be no need for new duties and taxes. it was already more than enough
Lots of option under 1800CC so yeah….. Tax Awaayyy
Increased tax is on all vehicles. See the last two bullets in the article.
Just to give Pakistani people pathetic Pakistan made vehicles in Extremely High Prices with no features
Fbr ka bas nahi chalta tati karnay per b tax laga day
Nawaz supporting pak suzuki is basically one crock supporting other
GO NAWAZ GO…….
Let’s import electric cars
Ghar mai light k liye bijli nai ati electric cars chalayen gay
Hamaray to ati hay bhai. Apka ghar kis city main hay?
Kindly tell me which city? Either we will shift there or make sure you go through hell like us.
Faisalabad. Jaltay nahi hotay bhai.
2-3 hour jati hay daily. Itni nahi jati kay car he charge na ho.
As exposed by IK, this is a mafia and hence they support each other. Moreover, they want the people to drive ugly looking and low powered cars so that they can be distinguished on the roads when they drive the big land cruisers and Prados which are either government owned or non custom paid in the name of Sheikhs or Embassies. However, lets all be Shairrrrrrrrrrrrrrrrrr and keep taking it as we are fine with it as a nation by electing Nawaz Shairrrrrrrrrrrrrrrrrrrrr
Not a wise decision
“With this step, the government aims to improve revenue collection by charging more taxes”
just like thief says lets rob people more frequently so we can get more money.
Nawax Sharif’s car dont levy 60% why?
I don’t understand why FBR and Other Gov increase tex’s , its better to bring all Black money form rest of the work, hang all cheaters. but they only want to make another hole in whole nation.
5000cc car ki duty kitni hy
5000 cc bmw car ka custom duty kitni hy