Overview
The PMLN government has set new taxes on imported cars to control the import of vehicles. Because under these taxes imported cars purchase is difficult for buyers. The new taxes set a maximum of 90% customs duty on Sport Utility Vehicles (SUVs) and off-road vehicles. Due to the critical circumstances, the government has imposed a ban on imported brand new and used cars including other imported products. Ban on an imported product is necessary to control the high bill of custom duty which is paid in the dollar. Devaluation of the rupee value against the dollar increased the crisis and inflation in the country.
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New Custom Duty SRO by FBR
According to the Federal Board of Revenue (FBR) SRO 966(I)2022 issued a new list of items which increased from 599 to 611 and new custom duty rates. The authority has mentioned custom duty from 2% to 90%.
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Custom Duty On Cars
The highest percentage of custom duty is 90% and its imposed on imported cars including SUVs and Crossovers. Under the SRO 966(I)2022 90% customs duty is imposed on imported SUVs and Crossovers. In the Fiscal Year 2023, 70% customs duty charge on used imported Crossover or off-road vehicles falls under 1801cc to 3000cc. Both custom duty rates have been implemented from the year 2022.
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Effects of High Custom Duty
The highest custom duty percentages are imposed on imported. Under the highest rates of customs owning a car is more expensive than before. It’s become difficult to own an imported and locally assembled car. On the other side, people who have cars are worried about full fuel expenses. Car prices are already very high in Pakistan after the government imposed high taxes on CKD kits.
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Conclusion
The only option left to us is just leaving the buying of cars to wait until prices come down. The clear situation of high taxes is understandable that automakers are forced to increase prices. The sky-rocking prices of cars not allowed everyone to own a car and the imported car is now far away from the purchase.
