ISLAMABAD: The Federal Board of Revenue (FBR) has imposed seven percent additional customs duty, from September 27, on the import of cars, jeeps, light/heavy commercial vehicles in completely knocked down (CKD) condition and components and sub-assemblies of automotive vehicles.
The FBR has issued an SRO1265(I)/2021 here on Wednesday to amend the SRO856(I)2021.
According to the notification, seven percent additional customs duty would also be applicable on the import under notification no SRO 655(1)/2006, dated the 5th June, 2006.
The SRO 655 (I)/2006 is related to the exemption of raw materials, sub-components, components and sub-assemblies, as are not manufactured locally, imported for the manufacture of components and assemblies.
The imports under the SRO 655(1)/2006 included sub-components, components and sub-assemblies of automotive vehicles, automotive climate control equipment and automotive batteries meant for in-house use or supply to OEMs and assemblers or sale in the open market.
The said items are used in the assembling of agricultural tractors, road tractors for semitrailers (prime movers) of 280 HP and above; road tractors for semitrailers (Prime Movers) less than 280 HP; fully CNG-dedicated vehicles and bicycles falling under different PCT headings.
As per SRO1265(I)/2021, seven per cent on goods falling under tariff slab of 30 percent and higher slabs as well as slabs of specific rates, except the following which shall be charged at the rate of two per cent:- goods falling under PCT codes 1507.1000, 1507.9000, 1511.1000, 1511.9010, 1511.9020, 1511.9030, 1512.1100, 1512.1900, 1512.2100, 1512.2900, 1514.1100, 1514.1900, 1514.9100, and 1514.9900; cars, jeeps, light commercial vehicles in CKD condition exceeding 1,000cc and heavy commercial vehicles in CKD condition; and import under Notification No SRO 655(1)/2006, dated the 5th June 2006.
Copyright Business Recorder, 2021