ISLAMABAD: In accordance with Finance Minister Miftah Ismail’s announcement to discourage imports, the Federal Board of Revenue (FBR) has announced the implementation of time-bound regulatory duty (RD) and additional customs tax (ACD) in the range of 100%-150% on around 600 to 700 luxury items.
Miftah said during a news conference last week on the easing of the import ban that with the imposition of RDs, a person may import a vehicle for Rs300-400 million, which was initially worth Rs60 million, showing that the government has no plans to increase imports at this time.
However, according to The News, the administration was not able to raise RDs and ACDs by 400-600%, as previously announced by the finance minister.
The increased RD rates would be in effect from August 22, 2022 to February 21, 2023, according to the FBR announcement.
| RD | Vehicle |
| 15%-100% | 4×4 vehicles Completely Built Up (CBU) |
| 15%-100% | New minivans (CBU) |
| 70%-100% | All-terrain vehicles (4×4) |
| 15%-100% | Sport utility vehicles/SUVs (4×4) |
| 5%-100% | Vehicle cylinder capacity exceeding 10,00cc but not more than 1,300cc |
| ACD | Vehicle |
| 35% | Sport utility vehicles/SUVs (4×4) |
“We are expecting import compression of 60-70%, and it will bring additional revenues to the tune of Rs15 billion on a per annum basis,”
stated FBR chairman Asim Ahmed
Another FBR official said that the Tariff Board had thoroughly discussed each tariff line and suggested a maximum RD in the region of 100%. If the administration wishes to raise RDs any higher, it must obtain authorization from Parliament.
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Vehicles, chocolates, electronics, cosmetics, household appliances, furniture, fruits, vegetables, meat, fish, and footwear all received RDs and ACDs from the FBR.
According to an FBR press release, 7% ACD would be applicable on goods falling under tariff slabs of 30% and higher, as well as slabs of specific rates, with the exception of goods falling under specified PCT codes and cars, jeeps, light commercial vehicles in CKD condition exceeding 1,000cc, and heavy commercial vehicles in CKD condition, which would be charged at the rate of 2%.
The RD would be imposed at a rate of 45% on the importation of military weapons, revolvers, and pistols. The RD on the import of other armaments, such as spring, air, or gas guns, pistols, and truncheons, has been raised from 25% to 45%.
The RD on the import of other weapons and similar equipment that act by shooting an explosive charge has been raised from 20% to 45%.
The board increased the RD on chocolate imports from 10% to 49%; jams, fruit jellies, marmalades, fruit or nut puree, and fruit or nut pastes made by heating, whether or not including added sugar or other sweetening materials, from 20% to 49%.
The FBR has also increased the import duty on glasses and goggles from 30% to 49%. It also imposed a 47% RD tax on the importation of pianos, including automated pianos and other string musical instruments.
