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Govt May Increase Excise Duty on Imported and Local Assembled Cars

The government is planning to impose/raise the Federal Excise Duty (FED) on imported and locally assembled motor vehicles through the promulgation of the Tax Laws Amendment Ordinance.

Sources told ProPakistani that the revenue generation measure under consideration is to rationalize the rates of the FED on imported and locally assembled motor vehicles.

The FBR has finalized the proposal including the revenue impact of the increase in the FED on vehicles, depending on the engine capacity of imported and locally manufactured vehicles. However, the proposal is yet to be approved by the government.

From January 16, 2022, the FBR revised upward the FED rates after the implementation of the Finance (Supplementary) Act, 2022.