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Government Imposes Up To 15% Customs Duty on Tractors

The government has imposed a customs duty (CD) of up to 15% on the import of agricultural tractors in the new fiscal budget. According to the details, the government has set the CD for these tractors as per their engine power.

Documents available with ProPakistani state that the government has imposed 15% CD on tractors with engine power between 26 kW and 75 kW. For agricultural tractors other than those mentioned above, the CD is 10%.

It bears mentioning that tractor manufacturing in Pakistan has been localized by up to 90%. The document doesn’t highlight whether the CD is on the completely built-up (CBU) units or completely knocked down (CKD) kits.

For CBUs, the CD will have a major impact on the final price of the tractor. Conversely, in the case of the CD on CKDs, the impact on the prices will be much lower, since the locally manufactured tractors are mostly indigenized.

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