The Federal Board of Revenue (FBR) will charge a reduced rate of 15 percent customs duty on the import of components for the assembly/manufacture of new motor cars including station wagons and racing cars.
The FBR issued SRO.02(I)/2022 to amend the SRO.656(I)/2006 here on Monday.
As per an amendment notification issued by the revenue division, the duty has been decreased from 30% to 15%. Moreover, the customs duty on tire tubes has also been brought down from 25% to 16%. Adding more to the relief, the government has also slashed the custom duty from 32.5% to 30% on the older model of 1000cc cars.
The S.R.O. 656(I)/2006 deals with the exemption of components (which include sub-components, components, subassemblies, and assemblies but exclude consumables), imported in any kit form and direct materials for assembly or manufacture of vehicles.
The 15 percent duty would be applicable on the import of components for assembly/manufacture in any kit form used in the vehicles of Pakistan Customs Tariff (PCT) heading 87.03 up to 1000cc (excluding specially designed twin cabin type taxi PCT heading 8703.3227 and 4-stroke auto rickshaw of PCT heading 8703.2115).
The FBR will charge 16 percent duty on the import of tires and tubes used in the vehicles of Pakistan Customs Tariff (PCT) heading 87.03 up to 1000cc (excluding specially designed twin cabin type taxi PCT heading 8703.3227 and 4-stroke auto Rickshaw of PCT heading 8703.2115). What do you think of small vehicle customs duty reductions? Post your comments in the section below.