FBR let’s ACD and RD on imported vehicles lapse

FBR has quietly let the duties on imported vehicles to lapse on March 31, and not renew them

LAHORE: The Federal Board of Revenue (FBR) has made the decision to not extend the duration of the additional customs duties, and regulatory duties that were levied on imported vehicles. It has done so by simply allowing Statutory Regulatory Orders (SRO) 204(I)/2023  and 206(I)/2023 to lapse on March 31, and not renew them again. This effectively ends the tariffs that were levied on imported vehicles on August 22. 

“This is a long-awaited step that has finally been taken. Keeping the regulatory duty and additional customs duty intact had no benefit. In fact, it had adverse effects on both consumers and businesses. This step will put pressure on local assemblers to stop hiking prices, which have also affected their business. The government will receive more remittances to pay towards customs duties through baggage schemes, and FBR will collect more customs duties. It is a win-win situation for everyone, says Mian Shoaib Ahmad, Chairman of the All Pakistan Car Dealers and Importers Association. 

What were the duties? 

The two relevant SROs are  SRO 1571(I)/2022, and SRO 1572(I)/2022. The former increased the regulatory duty on certain imported vehicles, whilst the latter increased the additional customs duty on certain imported vehicles. These SROs were originally set to lapse on February 21. However, they were extended till March 31 by SROs 204(I)/2023  and 206(I)/2023, respectively. 

SRO 1571(I)/2022  and SRO 204(I)/2023

SRO 1571(I)/2022 harmonised the regulatory duty across a range of imported vehicles by levying a flat 100% regulatory duty. Letting it lapse consequently returns the vehicle categories to the different regulatory duties that were levied upon them. 

SRO 1572(I)/2022 and SRO  206(I)/2023

 SRO 1572(I)/2022 simply raised the additional customs duty from 7% to 35% that was levied on different imported vehicles. Letting it lapse consequently returns the affected imported vehicles to the 7% they were previously subject to. 


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Daniyal Ahmad
Daniyal Ahmad
The author is a member of the staff, and covers the automobile, energy and advertising insdusties as a sector analyst. He can be reached at [email protected]


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