Pakistan has made a significant decision to abolish regulatory duties on imported used cars up to 1,800cc and reduce duty rates on various goods, including new cars and mobile phones. This move comes after the government’s previous strategy of heavily taxing imports had little impact on revenue but severely affected businesses in the country.
The decision was made after two Statutory Regulatory Orders (SROs) expired on March 31st and the chairman of the Tariff Policy Board refused to extend them further.
As a result, items such as new and used cars, high-tech mobile phones, home appliances, meat, fish, fruits, vegetables, footwear, furniture, musical instruments, dog and cat food, and ice-cream will become more affordable for consumers. The regulatory duty on used cars up to 1,800cc has been completely abolished, providing significant relief to consumers.
However, new cars in this category will still attract a 15% regulatory duty along with other taxes. The duty rates on mobile phones have also been halved across all categories.
This decision is expected to benefit around 500 to 700 imported cars of various engine capacities that are stuck at ports due to the non-availability of foreign currency. While new cars over 1,800cc will still have low regulatory duty rates, additional custom duties have been withdrawn on these vehicles, resulting in a significant reduction in prices.
