Regulatory Duty on Imported Vehicles End Cars RD April 2023 Update
The Government of Pakistan has reportedly end the Regulatory Duty RD on import of used cars up to (1800 cc)
It is important to discuss that the government imposed 100% regulatory duty on these cars in August 2022 under SRO 1571(I)/2022.
According to the SRO, the RD was imposed by February 2023, but the government extended the deadline to 31 mar 2023.
Business Flaws.
According to the reports, Now the government has also reduced the duty rate for new cars. After this easiness , it is expected that the prices of these cars will reduce definitely . The government decided on a policy of controlling imports through heavy taxes, which cost 400 million dollar and this effect the car business all over the country.
The two SROs that increased RD and other customs duty expired on 31st March as the Chairman of the Tariff Policy Board refused to extend them.
prices are expected to decrease in the coming days. Consumers of used cars up to 1800 cc will get a big advantages after this regulatory duty is end.Meanwhile, new cars in this category will be subject to 15 percent regulatory duty along with other taxes for sure
Statement of FBR
According to FBR officials confirmed the news. and they added that they could not officially confirm this till the release of the SRO. Hopefully it will happen soon.
Benefit of lower taxes
Reports said that 500 to 700 imported cars of various engine capacities stuck at the ports due to non-availability of others currency would also benefit from this reduction in taxes. Used cars up to 1800 cc will not have RD but new cars above 1800 cc will have Regularity duty
LC for local industry
The announcement came at a time when State Bank of Pakistan is yet to issue LCs for locally assembled car kits. As a result, companies are frequently suspending production
