Federal Board of Revenue (FBR) will now charge a 15% customs duty on the import of components for the assembly/ manufacture of new motorcars including station wagons and racing cars.
Earlier, a 32.5% customs duty was applicable on the import of components for the assembly/ manufacture of new motor cars. The FBR has issued SRO02 (I)/2022 to amend SRO656 (I)/2006.
The SRO 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.
Under the amended notification, although a 30% duty is applicable, but 15% for new make or model as certified by the Engineering Development Board (EDB) for three years from the date of issuance of the manufacturing certificate or up to June 30, 2026, whichever is earlier. The 15% 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).
Source: Business Recorder
A computer animation professional with over 23 years of industry experience having served in leading organizations, TV channels & production facilities in Pakistan. An avid car enthusiast and petrolhead with an affection to deliver quality content to help shape opinions. Formerly written for PakWheels as well as major publications including Dawn. Founder of CarSpiritPK.com