The Federal Board of Revenue (FBR) has announced the imposition of time-bound regulatory duty (RD) and additional customs duty (ACD) on almost 600 to 700 luxury commodities in the range of 100%–150%, in accordance with Finance Minister Miftah Ismail’s announcement to discourage imports.
In a news conference last week regarding the easing of the import ban, Miftah stated that with the imposition of RDs, a person could import a car for Rs300-400 million that was originally valued at Rs60 million. This indicated that the government did not now have plans to boost imports.
The News claims that the administration could not raise RDs and ACDs by 400–600% as the finance minister had before asserted.
According to the FBR notification, the higher RD rates would be in effect from August 22, 2022, through February 21, 2023.
|15%-100%||4×4 vehicles Completely Built Up (CBU)|
|15%-100%||New minivans (CBU)|
|70%-100%||All-terrain vehicles (4×4)|
|15%-100%||Sport utility vehicles/SUVs (4×4)|
|5%-100%||Vehicle cylinder capacity exceeding 10,00cc but not more than 1,300cc|
|35%||Sport utility vehicles/SUVs (4×4)|
Asim Ahmed, the chairman of FBR, told The News, “We are anticipating import compression of 60-70%, and it will yield additional income to the tune of Rs15 billion on a yearly basis.”
A different FBR representative claimed that the Tariff Board had thoroughly studied each and every tariff line and had proposed a maximum RD in the neighborhood of 100%. The government will need to ask Parliament for permission if it wishes to raise RDs even more.
Vehicles, chocolates, electronics, cosmetics, household appliances, furniture, fruits, vegetables, meat, fish, and footwear were just a few of the things that the FBR slapped with RDs and ACDs.
According to a press release from the FBR, 7% ACD will be charged on goods that fall under tariff slabs of 30% and higher, as well as slabs of specific rates, with the exception of those that fall under specific PCT codes and cars, Jeeps, light commercial vehicles over 1,000cc in CKD condition, and heavy commercial vehicles in CKD condition, which will only be charged at 2%.
The import of revolvers, pistols, and military weapons would be subject to the RD at a rate of 45%. On the import of other armaments, such as spring, air, or gas rifles and pistols and truncheons, the RD has been raised from 25% to 45%.
On the import of other rifles and similar equipment that discharge an explosive charge, the RD has been raised from 20% to 45%.
The board raised RD on the import of chocolates from 10% to 49%, as well as jams, fruit jellies, marmalades, fruit or nut purees, and fruit or nut pastes made through cooking, whether or not they contain added sugar or other sweetening agents.
Additionally, the FBR increased the RD on the import of eyeglasses and goggles from 30% to 49%. Additionally, imports of pianos, including automated pianos and other string musical instruments, were subject to a 47% RD tax.