Pakistan Rupee Exchange Rate
The time-bound notifications regarding the imposition of regulatory duties (RDs) and Additional Customs Duties (ACDs) on over 600 luxury and non-essential items have expired. The Federal Board of Revenue (FBR) had issued SRO204(I)/2023, SRO205(I)/2023, and SRO206(I)/2023, which expired on March 31, 2023. As a result, RDs/ACDs on the import of such items have been abolished since April 1, 2023. This means that there are no longer any regulatory duties for used cars up to 1,800cc, and duty rates have been significantly reduced for new cars, mobile phones, and other goods. The FBR had extended the time period of SRO1572(I)/2022, which dealt with the additional customs duty on the import of items, through SRO206(I)/2023.
Under SRO204(I)/2023, the FBR had extended the period up to March 31, 2023, for the imposition of regulatory duties on the import of items under SRO1571(I)/2022. The FBR had issued SRO1571(I)/2022 and SRO1572(I)/2022 on August 22, 2022, to increase/revise regulatory duties and raise additional customs duty on the import of luxury and non-essential items.
The enhanced rates of RDs were applicable from August 22, 2022, to February 21, 2023, under SRO1571(I)/2022, and RDs remained applicable on the import of items falling under serial number 554 of SRO1571(I)/2022 from August 22, 2022, to November 1, 2022. The FBR had issued notifications to extend the time period of regulatory duties and ACDs on the import of luxury and non-essential items up to March 31, 2023, but these notifications have expired on March 31, 2023.
Under SRO1572(I)/2022, a 7 percent additional customs duty was applicable on goods falling under tariff slabs of 30 percent and higher, as well as specific rates, except for certain items which were charged at a rate of 2 percent. These items included goods falling under specified PCT codes, cars, jeeps, light commercial vehicles in CKD condition exceeding 1,000cc, and heavy commercial vehicles in CKD condition.
From August 22, 2022, to February 21, 2023, the FBR also imposed a 35 percent additional customs duty on the import of vehicles falling under various PCT codes, such as sport utility vehicles (SUVs) 4×4, other vehicles, vehicles with compression-ignition internal combustion piston engine (diesel or semidiesel), components for the assembly/manufacture of sport utility vehicles in any kit form, all-terrain vehicles (4×4), vehicles with both spark-ignition internal combustion piston engine and electric motor as motors for propulsion, and other vehicles, as per SRO1517(I)/2022.
Under SRO1571(I)/2022, the regulatory duty was increased from 5 percent to 100 percent on the import of new vehicles with a cylinder capacity exceeding 1,000cc but not exceeding 1,300cc. The RD was also increased on the import of chocolates from 10 percent to 49 percent, jams, fruit jellies, marmalades, fruit or nut puree, and fruit or nut pastes obtained by cooking, whether or not containing added sugar or other sweetening matter, from 20 percent to 49 percent.
