ISLAMABAD: The Federal Board of Revenue (FBR) is likely to increase duties on imported vehicles in the budget 2014-2015, which will shoot up the car prices in the country.
Background discussions with FBR officials have revealed that the government is likely to increase duties on the import of vehicles in the budget. The official hinted that the government might increase duties on more than 1300cc cars. The proposal would enhance the car prices in the country if approved by Finance Minister Ishaq Dar.
The officials informed that the government is contemplating many other proposals to generate additional revenue next year that included imposition of federal excise duty (FED) on several commodities. The government is likely to enhance the FED on cement from 400 per metric tonnes to 500 PMT in the budget that would increase its prices. Similarly, the government could impose FED on cosmetics, paints and varnishes and lubricating oils in the budget.
However, the officials were of the view that government has no intention to impose duty on the import of gold. According to a senior official of the FBR, the government has not yet finalized the tax exemptions to be withdrawn in the upcoming budget, as he said, “Government is working with relevant stakeholders in this regard”.
Meanwhile, Dar, while chairing a meeting on budget, said that all discriminatory SROs would be abolished in a period of three years and all stakeholders are working together in this regard. He said that the government believe in taking all stakeholders on board including chambers of commerce, trade bodies, representatives of the industries, exporters and importers in the process of budget making.
Dar also chaired a meeting with presidents of Chambers of Commerce (FPCCI, KCCI, LCCI, QCCI, FCCI, Rawalpindi/Islamabad CCI, Gujranwala CCI, Sialkot CCI and Hyderabad CCI) at the FBR to discuss budget related proposals.
