The Federal Board of Revenue (FBR) has announced a new set of taxes including upto 60 percent ad valorem regulatory duty on import of new and old cars, jeeps and sport utility vehicles (SUVs).
Wednesday’s SRO made official the regulatory duty rates that were announced as part of the Federal Budget 2017-18 on May 26th.
The FBR issued two different SROs yesterday to confirm the implementation of regulatory duty that was announced in the budget on May 26, 2017. The FBR notified regulatory duty on ad valorem basis imposed on as many as 508 items. The step is directed towards government efforts to improve revenue collection by charging more on import of “non-essential and luxury” products.
The step is aimed to lead to an expected increase of Rs10 billion in government revenues.
According to the SROs, vehicles included for the purpose of levying regulatory duty included new sport utility vehicles 1801 cc to 3000 cc, RD 50 percent; Old and used sport utility vehicles 1801 CC to 3000cc, RD 60 percent; new cars and jeeps 1801 cc to 3000 cc, RD 50 percent; old and used cars and jeeps 1801 cc to 3000 cc, 60 percent; new cars and jeeps above 3000cc, RD 50 percent; old and used cars and jeeps above 3000 cc, RD 60 percent; new sport utility vehicles above 2000 cc, RD 50 percent; old and used sport utility vehicles above 2000 cc; RD 60 percent; new all-terrain vehicles (CBU), 50 percent; old and used all-terrain vehicles, 50 percent, etc.
With the higher regulatory duty in place, imported vehicles will become more costly, leaving buyers with no option but to pay high premiums on inferior quality local vehicles with long delays in delivery.
