The SRO of Regulatory Duty (RD) on the import of cars expired on March 31, 2023; since then, multiple news about it are circulating in the market. We have explained all the aspects in detail in our different blogs, still here is a recap for our readers:
- After the expiration of SRO1571(I)/2022, the RD on used cars up to 1800cc came back to 0% from 100%.
- RD on used cars above 1800cc came back to 70% from 100%.
- RD on new cars, including 4×4, Mini Vans, 1001cc to 1300cc cars, and SUVs is 15%, while it is 90% on SUVs 4×4.
- Prices will not come down because of 25% GST and 30% depreciation of PKR against USD between August 2022 and March 2023.
And now, multiple media reports suggest that the RD will be re-imposed on the import of cars. Quoting FBR Chairman Asim Ahmad, these reports claimed the government could resume the duty anytime. “Ministry of Commerce takes a decision about the imposing taxes and would be resumed after approval from the said ministry,” the reports mentioned. This news has led to further confusion among importers and consumers, planning to import or buy these vehicles. So, we decided to ask FBR directly about it.
Is RD Being Re-imposed?
PakWheels.com contacted the FBR office in Islamabad to confirm the news, and one of the officials rejected the report. “This is not true, FBR chairman’s statement is being presented out of context,” he told PakWheels. The official further added that there is no plan to re-impose RD, not until the next fiscal budget.
“No such proposal is currently under consideration,” the officer asserted. This means there would be no extension or re-imposition of RD on the import of cars in the near future, which is good news for the stability of the car market. So, if you plan to buy a used car and have the budget, you don’t need to worry about this.
What is your take on the chances of re-imposing RD on imported used cars? Please share your thoughts in the comments section.
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