Connect with us

Hi, what are you looking for?

Science & Tech

FBR Cuts Customs Duty on Car Assembly Parts By Over 50%

FBR Cuts Customs Duty On Car Assembly Parts By Over 50%:

FBR Cuts Customs Duty on Car Assembly Parts By Over 50%

The Federal Board of Revenue (FBR) will impose a reduced rate of 15% customs duty on the import of parts for the assembly or production of new motor vehicles, which include station wagons and racing cars.

The FBR issued SRO.02(I)/2022 on Monday to amend SRO.656(I)/2006.

Previously, the same components were subject to a 32.5 % duty.

The S.R.O. 656(I)/2006 addresses the exemption of direct materials used in vehicle assembly or manufacturing, as well as components (which include sub-components, components, subassemblies, and assemblies but exclude consumables).

The amended notification imposes a 30% duty, but it will be reduced to 15% for new makes and models approved by the Engineering Development Board (EDB) for a three-year period beginning on the date the manufacturing certificate was issued and ending on June 30, 2026, whichever comes first.

Imports of parts for assembly or manufacture in kit form for use in vehicles of Pakistan Customs Tariff (PCT) heading 87.03 with capacities up to 1000cc would be subject to a 15% duty (excluding specially designed twin cabin type taxi PCT heading 8703.3227 and 4-stroke auto rickshaw of PCT heading 8703.2115).

The FBR will levy a duty of 16% on imported tyres and tubes for use in Pakistan Customs Tariff (PCT) heading 87.03 vehicles with displacements up to 1000cc (excluding specially designed twin cabin type taxi PCT heading 8703.3227 and 4-stroke auto Rickshaw of PCT heading 8703.2115).

Pavan Manzoor
Written By

Pavan Manzoor is an experienced content writer , editor and social media handler along with a track record of youth-oriented activities in Pakistan and abroad. She was selected as a fully-funded delegate as a leadership fellow in Turkey. She also led a team of 5 volunteers at the week-long Young Professionals Fellowship in Maldives. She is also a member of the Youth Standing Committee on Higher Education.


ISLAMABAD: Mufti Saeed said that he solemnised twice Nikkah of Imran Khan with Bushra Bibi. Mufti Saeed, who is a member of PTI’s core committee,...


Dollar reaches all-time high in the interbank where it is being traded at Rs255. The rupee plummet a further and lowest so far in...


Honda jacks up prices citing uncertain economic conditions: Honda Atlas Cars Ltd. (HACL) raised the prices of several models by Rs300,000 to Rs550,000 effective...


The mother of well-known Bollywood actor Nawazuddin Siddiqui filed an FIR against her Daughter-in-law over a property dispute. According to ANI, an Indian news...