The Federal Board of Revenue (FBR) will impose a reduced rate of customs duty of 15 per cent on import of components for assembly/manufacturing of new cars, including station wagons and racing cars.
The FBR issued SRO.02(I)/2022 to amend SRO.656(I)/2006 here on Monday.
Earlier, a duty of 32.5% was applicable on the same components.
The S.R.O. 656(I)/2006 deals with the exemption of components (which include sub-components, components, sub-systems and assemblies, but excludes consumables), imported in any kit form and direct materials for the assembly or construction of vehicles.
According to the amended notification, 30% duty is applicable but it will be reduced to 15% for new make or model as certified by Engineering Development Board (EDB) for three years from the date of issue of construction certificate or till June 30, 2026, whichever of the two is earlier.
15 percent duty will be applicable on import of parts for assembly/fabrication in any kit form used in Pakistan Customs Tariff (PCT) vehicles class 87.03 to 1000cc (excluding specially designed double cab taxis PCT classes 8703.3227 and 4- stroke auto rickshaw of heading 8703.2115 PCT).
FBR will levy 16 percent duty on import of tires and tubes used in vehicles of Pakistan Customs Tariff (PCT) class 87.03 up to 1000 cc (excluding specially designed double cab taxis, PCT class 8703.3227 and 4-stroke Rickshaws of of PCT class 8703.2115).