FBR slaps 50% regulatory duty on import of vehicles

[Edevelop]

* Duty imposed on import of three different types of vehicles above 1801cc engine capacity

ISLAMABAD: The Federal Board of Revenue (FBR) here on Friday imposed 50 percent regulatory duty on the import of three different types of vehicles above 1801cc engine capacity.

Earlier, vehicles falling under PCT heading number 36 were made subject to 15 percent regulatory duty and through a fresh notification the FBR has added three new entries in the SRO and specified rate of 50 percent regulatory duty on import of such vehicles.

However, this regulatory duty would not be applicable on the import of electric hybrids vehicles as these are fuel efficient and economic in use.

According to the SRO 742 (I) 2013, the federal government in exercise of the powers conferred by Sub-section (3) of Section 18 of the Customs Act, 1969 (IV of 1969), has directed that the further amendments shall be made in its Notification No SRO 482(I)/2009, dated June 13, 2009. In the notification it was stated that in column (1), (a) after serial number 36 and the entries relating thereto in columns two, three and four, the following new serial number and the entries relating thereto shall be inserted, namely.

According to new serial number 36A vehicles falling under PCT heading 8703.2323 Sport Utility Vehicles 1801cc 50 percent ad valorem to 3000cc (except electric hybrids).

After serial number 38 and the entries relating thereto in columns two, three and four, the following new serial numbers and the entries relating thereto shall be inserted, namely: ‘38A 8703.3223 SUVs above 2000cc 50 percent ad valorem (except electric hybrids) 38B 8703.3225 all terrain vehicles (CBU) 50 percent ad valorem’ above 2000cc (except electric hybrids).

Earlier through inserting the Section 36 in the original notification, SRO regulatory duty structure was approved on cars falling under PCT heading 6914.9000 other 15 percent ad valorem. Now by amending this SRO FBR has imposed the regulatory duty of 50 percent on import of cars. In 37 8703.2329 cars and jeeps 1801cc to 3000cc (except electric hybrids) 50 percent ad valorem. In 38 8703.2490 cars and jeeps above 3000cc (except electric hybrids) 50 percent ad valorem. In 39 8703.3229 cars and jeeps above 2000cc (except electric hybrids) 50 percent ad valorem. In 40 8703.3390 cars and jeeps above 2500cc (except electric hybrids) 50 percent ad valorem and in 41 8703.9000 others (except electric hybrids) 50 percent ad valorem. staff report

Daily Times - Leading News Resource of Pakistan

 

[arushbhai]

Not trying to be stupid but I think there shouldn't be any duty on imported cars. Our roads are filled with shitty cheaply made suzuki mehrans and cultus. Why cant people in pakistan drive nice comfortable imported cars? Our roads and cities would look much much better and cleaner when people would be driving foreign made compact, mid size sedans and sedans. Is that too much to ask?

 

[Edevelop]

Not trying to be stupid but I think there shouldn't be any duty on imported cars. Our roads are filled with shitty cheaply made suzuki mehrans and cultus. Why cant people in pakistan drive nice comfortable imported cars? Our roads and cities would look much much better and cleaner when people would be driving foreign made compact, mid size sedans and sedans. Is that too much to ask?

We should take this opportunity to build our own automobile industry and public transportation systems. I mean really if we can build something as complicated as tanks and fighter jets, why not cars and trains ?

 

[NP-complete]

Not trying to be stupid but I think there shouldn't be any duty on imported cars.Our roads are filled with shitty cheaply made suzuki mehrans and cultus. Why cant people in pakistan drive nice comfortable imported cars? Our roads and cities would look much much better and cleaner when people would be driving foreign made compact, mid size sedans and sedans. Is that too much to ask?

Big words for a representative of a nation that cant put togeather an internal combustion engine.

 

[arushbhai]

We should take this opportunity to build our own automobile industry and public transportation systems. I mean really if we can build something as complicated as tanks and fighter jets, why not cars and trains ?

But do you think we have a potential to grow our own automobile industry considering the fact that Suzuki Mehran looks exactly the same as 25 years ago. I think our automobile industry is like a "nalaik bacha" who sits in the back of class. I think instead of introducing our own cars, we can grow our automobile industry by acquiring licenses from China, Europe and US to build their cars in our own homeland for local use. I am just sick and tired of seeing 500 civics, 500 corollas and 1000 mehrans at a traffic signal. People just dont want to buy anything else.

 

[Saquib]

Why they don't open up the car market! this will create jobs demands for better roads and motorways every one would get something out of it. But this is Pakistan so dream on!

 

[Sedqal]

Import duty would make sense if Pakistan has a indigenous automobile industry. Honda and Toyota (joint ventures in Pk) are hacks, they promised transfer of technology (and got huge discounts on taxes for that) and have utterly failed to keep their word.

 

[Argus Panoptes]

Import duty would make sense if Pakistan has a indigenous automobile industry. Honda and Toyota are hacks, they promised transfer of technology (and got huge discounts on taxes for that) and have utterly failed to keep their word.

The duties exist to maintain and promote the local monopolies to benefit a select few. The car buying public be damned.

 

[Luftwaffe]

We should take this opportunity to build our own automobile industry and public transportation systems. I mean really if we can build something as complicated as tanks and fighter jets, why not cars and trains ?

First tell you pious hard working government to Fine all those Pakistan car manufactures for cheap poor quality vehicles at high prices and cut down the prices by 35%. Same suzuki swift in hindustan is for 500,000 and the one in Pakistan is 1.4 million rupees what is the justification for the high prices automobile industry need not need anymore rebuilding and development; it is already there. Price and good quality is the need of the hour but that is not possible because businessmen and government is hand in hand...everyone knows it.

 

[Sedqal]

The duties exist to maintain and promote the local monopolies to benefit a select few. The car buying public be damned.

It goes beyond that, the cartel has become too powerful now. Govt would do well to cut them to size.

 

[Argus Panoptes]

It goes beyond that, the cartel has become too powerful now. Govt would do well to cut them to size.

Why? Those in government are part and parcel of the cartel!

 

[livingdead]

I think your govt can create special SEZ like chinese for auto sector and give incentive to them( say no tax for 10 years), if they want a homegrown auto sector to evolve.

 

[Argus Panoptes]

I think your govt can create special SEZ like chinese for auto sector and give incentive to them( say no tax for 10 years), if they want a homegrown auto sector to evolve.

No. It is more money in certain pockets if the existing monopolies are given a free hand to violate the people's pocketbooks to give them substandard products and services.

 

[Luftwaffe]

The duties exist to maintain and promote the local monopolies to benefit a select few. The car buying public be damned.

You know buying a 2013 suzuki swift is almost 1.4m rupees + 100,000 ish rupees car registration but if you want to buy it through bank it would costs you 1.9m rupees. Buying vehicle in Pakistan has become luxury, the same vehicles are 45%-60% cheaper in hindustan and even better quality.

india suzuki swift 5,58,000
Pakistan 13,98000.00 + 100,000ish registration [through bank 1.9m rupees]

 

[livingdead]

No. It is more money in certain pockets if the existing monopolies are given a free hand to violate the people's pocketbooks to give them substandard products and services.

tragedy of subcontinent politics... you elect pro business ... and end up getting chrony capitalism... you elect left .. you get poverty.