KARACHI: Revenue Division has raised the rate of regulatory duty to 100 per cent on import of motor vehicles into the country.
The Federal Board of Revenue (FBR) issued SRO 1571(I)/2022 to increase the rate of regulatory duty from 90 per cent to 100 per cent on import of motor vehicles.
In order to apply the new rate of regulatory duty the FBR through instant notification amended the SRO 966(I)/2022 issued on June 30, 2022.
The regulatory duty at the rate of 100 per cent has been imposed on imported vehicles included: mini vans in completely build units (CBU); 4X4 vehicles CBU; vehicles of a cylinder capacity exceeding 1000CC but not exceeding 1300CC; sports utility vehicles.
The regulatory duty on import of motor vehicles has been enhanced in the wake of high outflow of foreign exchange reserves.
Previously, the government on May 19, 2022 imposed a ban on import of CBU motor vehicles in order to support the balance of payment and prevent losses in rupee value.
However, on August 20, 2022 the government decided to lift the ban on the pressure of the International Monetary Fund (IMF).
Finance Minister Miftah Ismail has already indicated the levy of regulatory duty for curbing the import of luxury and non-essential items.