Government in order to put off pressure from foreign exchange reserves and the stability of the exchange rate, is in the process to devise an import curtailment plan as per which Regulatory Duties (RDs) on the number of imported items will increase by up to 100%.
According to the proposal, the regulatory duty on cars above 1,000cc will jump by 100% while Additional Custom Duty (ACD) will stand at 30%. Meanwhile, the RD on imported tires and home appliances will be increased by up to 50% while the importers of machinery will be slapped by 10%.
The RD for Power generation machinery, steel products, and ceramics may go up by 30%, 10%, and 40%. Mobile phone importers would have to pay double amounts in terms of RD as Rs 6,000 to 44,000 per unit duty has been proposed on mobile phones. However, the authorities have excluded energy, food, and export-oriented sectors from the proposed plan to dodge any negative impact.
At present, the regulatory duty on the import of tires, home appliances, power generation machinery, steel (CRC), cars (above 1,800cc) and ceramic stood at 20%, 20%, 10%, 5%, 70%, and 30% while mobile phone importers pay Rs 3,000 to Rs 22,000 in terms of the said duty. According to govt officials, Pakistan could save $1 billion on its monthly import bill through these measures.
Source: Mettis
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
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