The Government of Pakistan has abolished the regulatory duties (RD) on the import of used cars with an engine capacity of up to 1800cc, making these vehicles significantly less expensive and more accessible to consumers.
It is important to note that, in accordance with SRO1571(I)/2022, the Government of Pakistan imposed a 100% regulatory duty on the import of old cars in August 2022. The SRO stated that the RD on these cars would be in place until February 2023; however, the Government ultimately decided to extend that date by one month, to March 31, 2023.
Although the Federal Board of Revenue has yet to release an SRO for official confirmation on the matter, various media outlets have reported that the regulatory duties on the import of used cars up to 1800cc have now expired. Used automobiles up to 1800cc will have their prices substantially reduced after the regulatory duties expire.
Meanwhile, new cars in this category will also see some price reduction as the government additionally reduced the regulatory duty rates on new cars, which is anticipated to significantly reduce the price of new cars and may aid the automotive industry in navigating the current crisis.
Additionally, there will be a decrease in the RD for new automobiles with engines larger than 1800cc, but it won’t be as significant as the reduction for used automobiles. In the meantime, the Additional Customs Duty (ACD) on these cars that were imposed in August 2022 at a rate of 35% has also been removed.
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