The federal government has announced a reduction in registration tax for commercial vehicles in the Excise and Taxation Department, Islamabad, to provide some relief to inflation burdened population and businesses.
According to the details, the incumbent government has slashed registration tax for commercial vehicles in the Excise and Taxation Department. Islamabad from 4% to 1% to provide relief to businesses, who are struggling in the current economy.
Earlier, the government had reduced custom duty on the assembly kits for small cars with engine displacement of 1000cc or less. According to the details, the custom duty for small cars was reduced from 30% to 15%.
Furthermore, the government also slashed custom duty from 32.5% to 30% for older model of small cars with 1000cc engines or below. Moreover, the custom duty on tire tubes was also reduced from 25% to 16% to provide maximum relief to the people.
Meanwhile, the State Bank of Pakistan (SBP) has announced to ease import restriction for Completely Knocked Down (CKD) kits and opening of Letter of Credit (LCs) for car manufacturers / assemblers in the country.
However, it bears mentioning that despite ease of restrictions, the banks in the country are hesitating opening LCs for automotive companies, which continue to suffer in the falling economy. As a result, many car makers have announced non-production days (NPDs) due to shortage of resources / assembly kits.