The Federal Board of Revenue (FBR) has decided to do away with the system of clearing inbound automotive parts on weight basis. In the coming days, custom duties and other taxes on the imported automotive parts will be imposed on per unit basis.
Earlier this month in Karachi, PAAPAM representatives held a meeting with senior FBR officials lamenting the losses incurred to the national exchequer due to the current system.
After the meeting, FBR directed its Evaluation Directorate to shift to unit-based system for clearance of imported automotive parts by rendering changes in the weight-based system.
The new system will come into effect from the next month which will help raise billions in taxes.
The Pakistan Association of Automotive Parts and Accessories Manufacturers (PAAPAM) has lauded the FBR’s decision saying the adoption of new system will help the country on the economic front.