In Pakistan, regulatory duties on imported used cars up to 1,800cc will be abolished, and duty rates on new cars and mobile phones will be lowered. The government’s previous strategy of heavily taxing imports had little impact on revenue, but severely hurt businesses.
Two Statutory Regulatory Orders (SROs) expired on March 31st, and the Tariff Policy Board chairman refused to extend them.
As a result, a variety of goods will become more reasonably priced for consumers, including new and used cars, high-tech mobile phones, home appliances, meat, fish, fruits, and vegetables, footwear, furniture, musical instruments, dog and cat food, and ice cream. Consumers now enjoy significant relief thanks to the complete elimination of the regulatory duty on used vehicles up to 1,800cc.
New automobiles in this category are still subject to other taxes and a regulatory duty of 15%. Additionally, the duty rates on mobile phones have been cut in half for all categories.
This decision is anticipated to help the 500 to 700 imported vehicles with different engine sizes that are currently stranded at ports because the foreign currency is not readily available. While additional custom duties on new cars over 1,800cc have been removed, the prices of these vehicles have significantly decreased, even though new cars over 1,800cc will still have low regulatory duty rates.
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