ISLAMABAD: The Federal Board of Revenue (FBR) will charge 15 percent customs duty on the import of components for the assembly/ manufacture of new motorcars including station wagons and racing cars.

The FBR has issued SRO02 (I)/2022 to amend the SRO656 (I)/2006, here on Monday.

Earlier, 32.5 percent customs duty was applicable on the import of components for the assembly/ manufacture of new motor cars.

Vehicles’ parts, accessories: FBR slaps additional customs duty

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, 30 percent duty is applicable, but 15 percent for new make or model as certified by the Engineering Development Board (EDB) for three years from the date of issuance of manufacturing certificate or up to June 30, 2026, whichever is earlier. The 15 percent 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).

Copyright Business Recorder, 2023

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Muhammed Jan 10, 2023 12:12pm
Why introduce new makes/models & allow them confessional duties when the existing models have not achieved the desired level of deletion.
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Shahid Hussain Asad Jan 10, 2023 01:45pm
If the customs duty is reduced to 15% from 32.5%, will it reduce the prices of new cars?
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Nadeem Jan 11, 2023 10:59am
Is this duty for new entrants?
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Nadeem Jan 11, 2023 11:01am
Is this 15% is duty imposed on new entrants???
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