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).