FBR continues imposition of higher additional customs duty till March 31

FBR continues imposition of higher additional customs duty till March 31

ISLAMABAD: Federal Board of Revenue (FBR) has continued the application of additional customs duty on import of luxurious and non-essential items till March 31, 2023.

The FBR issued SRO 206 (I)/2023 dated February 20, 2023 to continue the additional customs duty on a number of imported goods till March 31, 2023.

The FBR previously imposed additional customs duty at the rate of 35 per cent on import of motor vehicles under various HS Codes.

The FBR issued SRO 1572(I)/2022 dated August 22, 2022 to notify amended rates of additional customs duty on import of various items. Through the instant SRO, the revenue body amended SRO 967(I)/2022 dated June 30, 2022.

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According to the latest SRO 1572(I)/2022, the FBR said thirty-five per cent additional customs duty on vehicle falling under PCT codes 8703.2323, 8703.2329, 8703.2490, 8703.3223, 8703.3225, 8703.3229, 8703.3390 and 8703.9000.

The FBR said that the notification would take effect on and from August 22, 2022 till 21st day of February 2023.

Through previous SRO 967(I)/2022 the additional customs duty was imposed at 2 per cent on cars, jeeps, light commercial vehicles in CKD condition exceeding 1,000 CC and heavy commercial vehicles in CKD condition.

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The FBR imposed the additional customs duty in order to discourage luxury imports into the country in order to save foreign exchange.

It is worth mentioning that the government on May 19, 2022 through imposed a complete ban on import of luxury and non-essential items in order to stop depletion in foreign exchange reserves as well as stop free fall in rupee value.

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However, on August 20, 2022, the government reversed its decision and allowed import of luxury and non-essential items despite the fact the foreign exchange reserves were declined drastically and the rupee value also registered massive fall against the US dollar.

Alternate to allowing import of luxury and non-essential items, the government increased regulatory duty and additional customs duty on import of various goods.