BAFL 46.29 Decreased By ▼ -0.08 (-0.17%)
BIPL 20.27 Increased By ▲ 0.12 (0.6%)
BOP 5.36 Increased By ▲ 0.04 (0.75%)
CNERGY 4.85 Increased By ▲ 0.25 (5.43%)
DFML 17.51 Increased By ▲ 0.91 (5.48%)
DGKC 78.56 Increased By ▲ 0.71 (0.91%)
FABL 28.91 Increased By ▲ 0.70 (2.48%)
FCCL 20.51 Increased By ▲ 0.36 (1.79%)
FFL 9.50 Increased By ▲ 0.28 (3.04%)
GGL 12.97 Increased By ▲ 0.16 (1.25%)
HBL 112.13 Increased By ▲ 0.63 (0.57%)
HUBC 122.60 Decreased By ▼ -1.20 (-0.97%)
HUMNL 7.61 Decreased By ▼ -0.14 (-1.81%)
KEL 3.35 Increased By ▲ 0.08 (2.45%)
LOTCHEM 28.47 Increased By ▲ 0.02 (0.07%)
MLCF 41.54 Decreased By ▼ -0.21 (-0.5%)
OGDC 121.62 Increased By ▲ 6.12 (5.3%)
PAEL 18.75 Decreased By ▼ -0.29 (-1.52%)
PIBTL 5.53 Decreased By ▼ -0.05 (-0.9%)
PIOC 113.75 Increased By ▲ 1.15 (1.02%)
PPL 107.36 Increased By ▲ 7.16 (7.15%)
PRL 26.98 Increased By ▲ 1.28 (4.98%)
SILK 1.10 Decreased By ▼ -0.01 (-0.9%)
SNGP 69.60 Increased By ▲ 1.80 (2.65%)
SSGC 12.81 Increased By ▲ 0.26 (2.07%)
TELE 8.44 Decreased By ▼ -0.06 (-0.71%)
TPLP 13.36 Decreased By ▼ -0.04 (-0.3%)
TRG 85.53 Decreased By ▼ -0.12 (-0.14%)
UNITY 26.33 Decreased By ▼ -0.32 (-1.2%)
WTL 1.55 Decreased By ▼ -0.03 (-1.9%)
BR100 6,450 Increased By 73 (1.15%)
BR30 22,796 Increased By 419.9 (1.88%)
KSE100 62,956 Increased By 463 (0.74%)
KSE30 21,004 Increased By 174.8 (0.84%)

ISLAMABAD: The Federal Board of Revenue (FBR) has proposed to raise the federal excise duty (FED) on imported and locally-assembled motor vehicles through the promulgation of the Tax Laws Amendment Ordinance to generate additional revenue in ‘mini-budget’.

Sources told Business Recorder here on Friday that the revenue generation measure under consideration is to rationalise the rates of the FED on imported and locally-assembled motor vehicles.

In this connection, working is being done by the FBR to finalise the revenue impact of the raise in the FED on vehicles, depending on the engine capacity of imported and locally-manufactured vehicles. However, the proposal has yet to be approved by the government.

Car making components: FBR to charge 15pc duty on import

The FBR has drafted two proposals to raise the FED on cigarettes through the Presidential Ordinance. However, the proposals have not been finalised yet. The first proposal is to raise FED by Rs200 for the existing slabs of cigarettes. The second proposal is to raise the FED by Rs500 in both the existing tiers of cigarettes. The proposal is to add additional FED in the existing rates of the FED applicable for both slabs of cigarettes.

Presently, the rate of the FED for Tier-I (slab 1) is Rs6,500 per 1,000 cigarettes and the FED rate on Tier-II (slab-2) for Rs2,050 per 1,000 cigarettes.

From January 16, 2022, the FBR had revised upward the FED rates after the implementation of the Finance (Supplementary) Act, 2022.

Through S No 55, 55B, 55C and 55D of Table-1 of the First Schedule to the Federal Excise Act, 2005, the rates of FED on imported, locally-manufactured motorcars/SUVs, imported and locally-manufactured double cabin were provided respectively. In order to rationalise the existing rates of FED on vehicles last year, an increase in various slabs were made from January 16, 2022, through the Finance (Supplementary) Act, 2022.

Copyright Business Recorder, 2023


Comments are closed.

Aamir Latif Jan 28, 2023 01:31pm
FBR can only jack FED or other races as easy way out instead someone taking them to task on their unrealistic tax targets which has never been met... Increasing taxes like on cars when sakes is down by 50% nearly is killing further sales.... Further reduction plus productivity set back.... Instead, should reduce taxes to let businesses pick up with increased sales and revenues as such..
thumb_up Recommended (0)
Rana Altaf Jan 28, 2023 01:42pm
Fact Sheet. I live in foreign Country. I believe that Gift Scheme is a scheme to make nation Corrupt. This is just creating a commission business if you have been living abroad. It must be stopped immediately. Rana Amir +61490867813
thumb_up Recommended (0)
Aamir Latif Jan 28, 2023 01:46pm
With 50% drop in car sales and factories partially closing, raising FED etc is going to kill it further... Why not reduce taxes to improve sales as prices keep rising with sagging Rs... Seems FBR can only present unrealistic budgetary targets which had never been met, mini budget means raise taxes, economy slows further... What a failed economic management
thumb_up Recommended (0)
Muhammad Kashif Jan 28, 2023 01:57pm
One day over-taxation will eliminate the entire cigarette industry. Over -taxation will backfire on the cigarette industry.
thumb_up Recommended (0)
rana amir Jan 28, 2023 02:28pm
Fact Sheet Import of car must be banned altogather Only encourage all electric and total ban all combustion. Production must be localized of all electric. With PM solar initiative align this with solar chaging station. Rana Amir
thumb_up Recommended (0)
Ulgen Jan 29, 2023 09:07am
@Aamir Latif, They need money to launder. And have fun with poor people's blood.
thumb_up Recommended (0)

FBR seeks to raise FED on motor vehicles

General elections: Ministry of Finance releases Rs17.4bn to ECP

Inter-bank: rupee records 6th successive gain against US dollar

Open market: rupee edges higher against US dollar

Cotton arrival up 5.2% in last two weeks of Nov: PCGA

KSE-100 settles shy of 63,000 after 463-point gain

More than 15,900 Palestinians killed in Gaza since Oct. 7: Palestinian health minister

Situation in Gaza 'getting worse by the hour': WHO

India to be world’s third-largest economy by 2030: S&P Global Ratings

CodeNinja secures $1.6mn investment led by sAi Venture Capital

Pakistan women’s team secures historic T20I series win over New Zealand