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Govt Reduces Additional Customs Duty on Heavy Commercial Vehicles

The government of Pakistan has reduced Additional Customs Duty (ACD) for vendors and completely knocked down units of heavy commercial vehicles.

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The Ministry of Industries and Production informed the Tariff Policy Board (TPB) at the 33rd meeting that in an earlier proposal to the board, they had mistakenly omitted ACD reduction on imports for vendors and on CKD units of heavy commercial vehicles under SRO 655 (I)/2006. As a result, the government could not reduce ACD for vendors and on heavy commercial vehicles and created a tariff anomaly in the automotive sector.

In order to address this irregularity, the TPB approved the reduction in ACD which was also supported by the Federal Board of Revenue (FBR) and the proposal was moved to the commerce division.

The Ministry of Commerce then moved the summary to the federal cabinet regarding the removal/imposition of ACD and Regulatory Duty (RD) on the auto sector among other items.

In its proceeding meeting, the cabinet decided to remove the ACD on CKD units of light commercial vehicles i.e. vehicles up to 1000 cc and the cabinet reduced ACD from 7 percent to 2 percent for vehicles of engine capacity of above 1001 cc.

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