The Federal government is considering imposing Federal Excise duty (FED) on vehicles above 1800cc to curtail the Current Account Deficit (CAD).
Sources told ProPakistani that the Federal Board of Revenue and Ministry of Industries and Production have been working on different proposals with regard to curtailing CAD, which has reached $5.1 billion from July to October of the current fiscal year.
In addition, banning the import of Completely Built Unit (CBU) vehicles till June 30, 2022, is also on the card.
Moreover, the government might also increase Customs duty, Additional Customs Duty (ARD) as well as Regulatory Duty (RD) on a number of items, including non-stamped as well as partially or wholly stemmed Tobacco, non-alcoholic beer, betel leaves, Areca nuts, pine, LCD, LED, OLED vegetable fats and oil, spin finish oil, polymers of ethylene, sheets, rice, covers for inner body, wire condensers and others luxury items.
The relevant ministries, as well as departments, would sit for another time during this week for the finalization of these proposals.
Sources said that an increase of 8.7 percent was witnessed in the import of Food group items, including pulses and palm oil, 8.2 percent in textile machinery, 7.6 percent in consumer goods, 6.8 percent in textile group, 19.4 percent raw materials, and 30.2 percent in petroleum products during the first quarter of the current fiscal year.
It is pertinent to note that the government has approved $2.3 billion for the whole year target of CAD during the budget 2021-22.