LAHORE: The customs authorities have requested the Federal Board of Revenue (FBR) for giving the benefits of concessionary rates of duties and taxes on the import of environment-friendly ‘electric vehicle’ (EV) as applicable in case of ‘hybrid electric vehicle’ under the SRO 499 (1) /2013 dated 12.6.2013.
Sources told CT that the FBR is examining the issue in the light of practice in the field formations and expected to issue a clarification after the completion of the exercise.
The collector of customs has raised the question whether a complete electric vehicle is entitled to benefit/concession of duties and taxes available to electric hybrid vehicle in terms of SRO 499(I)/2013.
According to Jameel Nasir, Collector Model Customs Collectorate (Appraisement) Dry Port Lahore, the facts of the case in brief are that one Mian Ahmad Irfan s/o Muhammad Noorullah imported an ‘electric vehicle’ (EV) of model 2016 bearing chassis No. 5YJSB7E21GF137160 under the Lift Scheme and filed GD No. 792 dated 24.10.2017 through Sanasu Traders, Customs Clearing Agent. As per examination report, the imported vehicle is “used Tesla fully electric car S70 fuel, electrically 193 kw, model 2016, dual motor, four-wheel drive with standard accessories.
At the time of assessment, the importer contended that the vehicle is entitled to benefit/concession of duties and taxes available to the “hybrid electric vehicle” on the analogy that both types of vehicles are environment-friendly and that the electric vehicle imported by him is far better from the perspective of environment compared to fossil fuel vehicles and hybrid electric vehicles.
It generates no pollution and noise. The importer further contended that the vehicle squarely falls under ‘hybrid electric vehicle’ (HEV) in terms of SRO 499(1)/2013 dated 12.6.2013, the collector letter said.
Since no evidential record/data of such vehicle is available, the request of importer for provisional assessment was acceded to. The said vehicle was assessed under the PCT 7803.8090 attracting customs duty of 50 percent, sales tax 17 percent, withholding tax 9 percent and additional customs duty 1 percent.
He further contended that since no cubic capacity of the vehicle is available therefore federal excise duty @ 10 percent is also not attracted in this case. Out of total amount of duties and taxes of Rs6.7million, the differential amount of duties and taxes including FED (Rs3.9million) has been secured in the shape of pay order. Against this backdrop, Board’s guidance is solicited on the following specific question:
“Is a complete electric vehicle covered under ‘hybrid electric vehicle’ in terms of SRO 499(I)/2013 dated 12.6.2013 and entitled for benefit/concession of duty and taxes available to electric hybrid vehicles?.
