KARACHI: Federal Board of Revenue (FBR) has allowed reduced rate of customs duty on import of certain automotive vehicles in Completely Built Units (CBUs) under Automotive Development Policy 2016-2020.
Following are the automotive vehicles, which are granted reduced customs duty rates on import:
1. Agricultural Tractors, having an engine capacity exceeding 26 kW but not exceeding 75kW (PCT code 8701.9220, 8701.9320) at 15 percent.
2. Agricultural Tractors (other than mentioned at S. No. 1 above) (PCT Code 8701.9100, 8701.9400, 8701.9500) at 10 percent.
3. Fully dedicated LNG buses (CBU) (PCT Code 8702.9030) at one percent
4. Fully dedicated LPG buses (CBU) (PCT Code 8702.9040) at one percent
5. Fully dedicated CNG buses (CBU) (PCT Code 8702.9050) one percent.
6. Hybrid Electric Vehicle (HEV) (CBU) (PCT code 8702.2090, 8702.3090) at one percent.
7. Hybrid Electric Vehicle (HEV) (CBU) (PCT code 8704.2214, 8704.2294, 8704.2340, 8704.3240) at one percent.
8. Trailers (PCT code 87.16) at 15 percent
The FBR said the measure is aimed at promoting cleaner and more energy-efficient transport solutions in Pakistan, while also supporting the agricultural and public transport sectors through reduced input costs. Officials believe the reduced duty structure will encourage the import of modern vehicles, particularly hybrid and alternative fuel buses, helping to improve environmental sustainability.
Industry stakeholders expect the policy to enhance availability of advanced vehicles in the local market and gradually support technology transfer and modernization of Pakistan’s automotive sector in line with national development goals.