The Federal Board of Revenue (FBR) recently made an announcement stating that the notification for imposing regulatory duties (RD) on the import of vehicles and mobile phones had a sunset clause that expired on March 31, 2023.
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Although FBR Chairman Asim Ahmad confirmed that no new notification had been issued on the matter, the Ministry of Commerce has the power to decide whether or not to impose regulatory duties on these items.
The time-bound statutory regulatory orders (SROs) that dealt with regulatory duties on cars and mobile phones had already expired, and as a result, regulatory duties were automatically removed from these items at the import stage. Ahmad emphasized that there was no immediate need to re-impose regulatory duties on the import of luxury mobile phones and vehicles.
The FBR can only issue a new notification on the imposition of regulatory duties on these items with the recommendation of the Ministry of Commerce, which would then be implemented by the FBR. The final decision regarding the imposition or removal of regulatory duties on these items will be made by the Ministry of Commerce, and the FBR will subsequently issue the necessary SROs.
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This news has important implications for the import of vehicles and mobile phones into Pakistan, and businesses operating in this sector will need to pay close attention to any future developments in this area.
The expiration of regulatory duties on these items may provide a boost to the import of luxury goods, while the imposition of regulatory duties could have the opposite effect. Overall, it remains to be seen what the Ministry of Commerce will decide regarding the imposition of regulatory duties on these items, and the FBR will likely be closely monitoring the situation.
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