Used vehicles: duties, taxes increased

The government has increased fixed amount of duties and taxes on the import of old and used vehicles (up to 800cc and 801cc to 1800cc), according to Finance Bill (2014-15) issued here on Tuesday. The duty and taxes on used vehicles were fixed in 2005 which were revised in 2008 to cater for increase in prices. The FBR has proposed that fixed amount of duty and taxes on used vehicles may be revised upward by approximately 10 percent.
According to the new rates of duties and taxes on the import of old vehicles issued here on Tuesday, up to 800cc the rates of duty and taxes have been increased from US $4400 to US $4800; 801cc to 1000cc from US $5500 to US $6000; 1001cc to 1300cc from US $1100 to US $12000; 1301cc to 1500cc from US $15400 to US $16900; 1501cc to 1600cc from US $18700 to US $20500 and rate of duties and taxes on the import of old vehicles has been increased from US $23100 to US $25400for vehicles of 1601cc to 1800cc (Asian makes only but excluding jeeps).
Last year, the exemption of duty & taxes was restricted upto 2500cc which resulted in negligible import of HEVs above 2500cc. therefore, it is proposed that the concession on imports of HEVs may be further rationalised. Through Finance Bill (2014-15), in case of supply of natural gas to CNG stations, the Gas Transmission and Distribution Company shall charge sales tax from the CNG stations at the rate of seventeen per cent of the value of supply to the CNG consumers, as notified by the Board from time to time, but excluding the amount of tax, as provided in clause (46) of section.
Sales tax was being charged @ 9% over and above standard rate of sales tax on supply of natural gas by Gas Distribution Companies to CNG stations. This 9% sales tax was being charged in view of value addition made by CNG stations. Earlier this recovery was made through Sales Tax Special Procedure Rules, 2007 and later on through insertion of sub-section (8) of section 3 of the Sales Tax Act, 1990. the special procedure as well as sub-section(8) of section 3 have been stuck down by the Supreme Court of Pakistan. Sales Tax (Amendment) Ordinance, 2014 was issued by the president of Pakistan and necessary changes were made by substituting sub-section (8) of section 3 and by amending section 3B of the Sales Tax Act, 1990. it is proposed to get approval of the parliament to the changes made through the presidential Ordinance.