Federal Government drastically raises taxes on imported cars and other luxury items
The federal cabinet has approved the imposition of regulatory duty up to 100 percent on the import of motor vehicles into the country.
According to a notification issued by the Federal Board of Revenue, SRO 1571(I)/2022, regulatory duty has been increased from 90 percent to 100 percent on the import of motor vehicles. The regulatory duty at the rate of 100 percent has been imposed on imported vehicles included: minivans (CBU), 4X4 vehicles CBU; vehicles of a cylinder capacity exceeding 1000CC but not exceeding 1300CC; sports utility vehicles. The duty on minivans has been increased from 15% to 100% while tax on sports vehicles and car-jeep has been increased from 70% to 100%.
Besides the vehicles, the government has raised regulatory duties ranging from 5 to 100 percent on nearly 800 Items. Regulatory duty on dry fruits, walnuts, and cherries has been increased from 20% to 49% while duty on imported apples is increased from 45 to 49 percent. The duty on pasta and jams is reduced from 20 to 50 percent. The regulatory duty on imported cigars has been increased from 20 to 50 percent.
Up to 49% regulatory duty is imposed on fresh, dry, canned fruits, juice, and chocolate while 49% regulatory duty has been imposed on the import of electronics products, jewellery, ceramics, kitchen products, music instruments, glasses, and perfumes.
Likewise, up to 10% regulatory duty is imposed on box-packed food items, meat, and fruits while 74% duty has also been imposed on dry fruits, fish, and coconut.