Govt to Increase Taxes on Cars & Tyres By Up To 100%
The federal government is mulling over imposing high taxes on cars and tyres, including increased Regulatory Duty (RD) and Additional Customs Duty (ACD). According to the details, the new coalition government is preparing plan to reduce imports by nearly $1 billion to fix the trade deficit and recover the depreciating Pakistani Rupee (PKR) against the US Dollar (USD to PKR).
According to reports, the Federal Board of Revenue (FBR) and the Ministry of Commerce has proposed an increase in the taxes on cars above 1000cc. The reports state that FBR has suggested an increase in Regulatory Duty (RD) by up to 100%, while also suggesting an increase in the Additional Customs Duty (ACD) by up to 30%.
Furthermore, the authorities have also proposed a hike in the Regulatory Duty (RD) on import of tyres up to 50%. It is pertinent to mention that the current RD on tyres is 20%. This means that prices of these items will witness a huge rise if the government decides to approve the increase in Regulatory Duty (RD) and taxes
The new coalition government is also mulling over increasing Regulatory Duty (RD) and Additional Customs Duty (ACD) on other items, including consumer products, home appliances, power generation equipment, steel products, ceramics, and mobile phones.
It is pertinent to mention that Pakistan has entered an economic crisis as the Pakistani Rupee continues its downward trend against the US Dollar (USD to PKR) reaching Rs. 198.39 at the closing of the inter-bank market on Wednesday, while crossing Rs. 200 mark in the open market.
Read more: Dollar Rate in Pakistan – 18 May 2022.
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