The government has proposed withdrawing fixed duties and taxes on the import of old and used Asian cars above 1300cc in its budget for the fiscal year 2023-24.
The current cap on duties and taxes for imported used cars up to 1800cc was put in place in 2005. The government’s decision to withdraw the cap is likely to lead to higher prices for imported used cars, as customs officials will now be able to charge duties and taxes based on the actual value of the vehicle.
The decision is part of the government’s efforts to raise revenue and reduce the country’s budget deficit. The government is also facing pressure from the International Monetary Fund (IMF) to implement reforms to stabilize the economy.
Pakistan’s economy is in turmoil amid financial woes and the delay in the IMF agreement. The IMF has been providing Pakistan with financial assistance since 2019, but the government has been struggling to meet its conditions for continued support.
The government’s budget for fiscal year 2023-24 is being closely watched by economists and investors. It is seen as a key test of the government’s ability to implement reforms and stabilize the economy.
The government has proposed a number of measures, including raising taxes, reducing spending, and increasing privatization. However, it remains to be seen whether they will be enough to satisfy the IMF and avoid a default on Pakistan’s debt.