The Government of Pakistan has abolished regulatory duties (RD) on import of used cars up to 1800cc engine capacity, which is going to make these vehicles a lot cheaper and much more affordable for the consumers.
It is pertinent to mention that Government of Pakistan had imposed 100% regulatory duty (RD) on used cars import in August 2022 under SRO1571(I)/2022. According to the SRO, the regulatory duty (RD) on these vehicles was imposed till February 2023, but the Government ended up extending that deadline by one month to 31 March 2023.
However, as per several media reports, the regulatory duties on import of used cars up to 1800cc has now expired, but the Federal Board of Revenue is yet to issue an SRO for final confirmation on the matter.
Meanwhile, the Government of Pakistan has also reduced the regulatory duty rates for new cars, which is expected to bring down prices of new vehicles down significantly, which may end up helping the automotive industry through the current crisis.
After expiration of the regulatory duties (RD), the consumers of used cars up to 1800cc will see a significant reduction in prices, while new cars in this category will also get some form of reduction in prices.
Furthermore, the Regulatory Duties (RD) on new vehicles of over 1800cc will see a reduction, but it won’t be as significant as the cut in RD for used cars. Meanwhile, the additional custom duties have also been withdrawn on these cars, which was imposed at the rate of 35% in August 2022.
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