Islamabad, May 18, 2025 — In a major policy shift aimed at liberalizing trade and boosting industrial efficiency, Pakistan has announced plans to phase out additional duties and taxes on raw materials used in the auto sector.
(more…)Tag: additional customs duty
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Pakistan Introduces New Rates of Additional Customs Duty
Karachi, June 30, 2024 – Pakistan has introduced new rates of additional customs duty on hundreds of imported goods for the fiscal year 2024-25.
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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.
READ MORE: Pakistan keeps 100 pc regulatory duty on car imports
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.
READ MORE: Active Taxpayers List expires on February 28, 2023: FBR
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.
READ MORE: FBR plans facilitation at taxpayers’ doorstep
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.
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FBR slaps additional customs duty at 35% on motor vehicles
ISLAMABAD: The Federal Board of Revenue (FBR) has 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.
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.
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.
READ MORE: Pakistan lifts ban on import of cars, phones, luxury items
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.
READ MORE: Pakistan raises Regulatory Duty to 100 % on motor vehicle import
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Additional customs duty reduced to 2% on auto parts
ISLAMABAD: The Federal Cabinet on Tuesday approved a significant reduction in additional customs duty on the import of auto parts, lowering it from seven percent to two percent. This decision aims to boost the indigenous production of vehicles in Pakistan and promote local manufacturing.
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Additional customs duty at 7% slapped on imports under tariff slab of 30% and above
The Federal Board of Revenue (FBR) has announced the imposition of additional customs duty (ACD) ranging from 2% to 7% on specific imports falling under various tariff slabs, with the new rates taking effect from July 1, 2021.
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FBR removes additional customs duty on import of auto disable syringes
ISLAMABAD: Federal Board of Revenue (FBR) has removed additional customs duty on import of auto disable syringes with or without needles.
The FBR issued SRO 367(I)/2021 dated March 30, 2021 and amended the SRO 572(I)/2020 dated June 30, 2020.
According to the latest notification the additional customs duty shall not be collected on the import of auto disable syringes with or without needles under PCT codes 9018.3110, 9018.3120 up to June 30, 2021.
Similarly, the additional customs duty is also not leviable on import of tubular metal needles under PCT code 9018.3200 and rubber gaskets under PCT 4016.9310 imported by sales tax registered manufacturers of auto disable syringes up to June 30, 2021.
Prior to this through Tax Laws (Second Amendment) Ordinance, 2021, the import of auto disable syringes with or without needles were allowed sales tax exemption.
Similarly, import of raw materials for the manufacturers of auto disable syringes including tubular metal needles and rubber gaskets were allowed sales tax exemption.
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FBR issues SRO to withdraw additional customs duty on raw material import
ISLAMABAD: Federal Board of Revenue (FBR) has withdrawn additional customs duty on import of raw materials of around 174 tariff lines.
The FBR on Thursday issued SRO 81(I)/2021 dated January 22, 2021 to abolish additional customs duty on import of raw materials of 174 tariff lines.
The FBR issued the SRO for removal of additional customs duty to comply with the decision of Economic Coordination Committee (ECC) meeting held on January 06, 2021.
The Ministry of Commerce presented a summary regarding removal of additional 2 percent customs duty on raw material, on horizontal basis under National Tariff Policy 2019-2024.
The ECC approved the summary with a direction that budget cycle must be observed while planning important incentives for businesses and industries for smooth planning and subsequent implementation during the financial year.
Through the recent notification the FBR amended the SRO 572(I)/2020 dated June 30, 2020. Through the amendment the FBR replaced the list of raw material that had allowed waiver of additional customs duty on import or raw material on 25 tariff lines.
Through the SRO 572(I)/2020 dated June 30, 2020 the FBR imposed rates of additional customs duty at two, four and seven percent on import of goods.
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ECC approves removal of additional customs duty on 152 tariff lines
ISLAMABAD: The Economic Coordination Committee (ECC) of the Cabinet on Wednesday approved removal of additional customs duty at 2 percent on import of raw material of 152 tariff lines.
Dr. Abdul Hafeez Shaikh Federal Minister for Finance and Revenue chaired the ECC meeting. Federal Minister for Interior Sheikh Rasheed Ahmed, Minister for Privatization Mohammad Mian Soomro, Minister for Planning, Development and Special Initiatives Asad Umar, Minister for Industries and Production Hammad Azhar, Adviser to the PM on Commerce Abdul Razak Dawood, SAPM on Revenue Dr. Waqar Masood, SAPM on Petroleum Nadeem Babar and Minister for National Food Security and Research Syed Fakhar Imam participated in the meeting.
Governor State Bank of Pakistan Reza Baqir also participated through video link.
Ministry of Commerce presented a summary regarding removal of additional 2 percent customs duties on 152 tariff lines, mostly raw material, on horizontal basis under National Tariff Policy 2019-2024.
The ECC approved the summary with a direction that budget cycle must be observed while planning important incentives for businesses and industries for smooth planning and subsequent implementation during the financial year.
Ministry of Maritime Affairs tabled a summary for awarding contract regarding infrastructure facilities, sewerage system and water supply system in Gulshan-e-Benazir Township Scheme (GBTS) at Port Qasim Authority, Karachi. The ECC approved the projects in conformity with the PQA Act-1973, in principle, and directed Ministry of Maritime Affairs to settle the modalities for the award of contracts as per rules.
Ministry of National Food Security and Research presented a detailed summary regarding provision of additional quantities of wheat to KPK, AJ&K and Utility Stores Corporations (USC). The Additional Secretary, M/o NFS&R gave a detailed presentation regarding availability of wheat stocks across the country. The ECC approved additional wheat allocation of 200,000 MT for KPK 80,000 MT to AJ&K and 220,000 MT to USC from PASSCO as requested. ECC also approved the import of additional wheat to buffer up stocks till the arrival of fresh crop after seeking detailed input from all concerned.
The summaries related to the Textile and Apparel Policy (2020-25) and National Freight and Logistics Policy (NFLP) were deferred to next ECC for comprehensive consultation process with key stakeholders.
ECC approved the following Technical Supplementary Grants during the meeting: a) Rs. 30 million for the Ministry of Defence for the purchase of spare parts for Helicopters for the government of Khyber Pakhtunkhwa (KPK). b) Rs. 400.020 million for the Ministry of Law and Justice to establish additional courts in compliance with the orders of the Supreme Court. c) Rs. 2.268 billion for the Higher Education Commission for completion of various Disbursement linked Indicators (DLIs) under the IDA credit facility.
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FBR abolishes regulatory duty, ACD on various imported goods
ISLAMABAD: Federal Board of Revenue (FBR) on Wednesday abolished regulatory duty and additional customs duty on various raw materials used by textile industry.
The FBR issued SRO 1043(I)/2020 dated October 13, 2020 abolished regulatory duty of 8 percent on various chemicals used as raw material for textile industry.
Besides, regulatory duty imposed at two percent on import of artificial yarn and staple fiber has also been abolished. Besides, the regulatory duty has been reduced from five percent to 2.5 percent on import of woven fabric of synthetic staple fiber.
The FBR issued another SRO 1042(I)/2020 dated October 13, 2020 to withdraw additional customs duty (ACD) on over 100 tariff lines.