FBR increases regulatory duty on motor vehicles from 15pc to 50pc

ISLAMABAD: The Federal Board of Revenue (FBR) on Friday announced a sharp increase in regulatory duty on import of new motor vehicles.

The FBR issued SRO 157(I)/2022 to notify the increase in regulatory duty on motor vehicles from 15 per cent to 50 per cent.

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The regulatory duty has been enhanced on import of new 4X4 in completely built unit (CBU), new mini van, new vehicle with engine capacity above 1,000CC etc.

The FBR previously issued 840(I)/2021 on June 30, 2021 to impose regulatory duty to discourage import of non-essential and luxury items.

The regulatory duty shall be applicable till June 30, 2022.

Furthermore, the regulatory duty at 10 per cent has also been imposed on import of electric vehicles in CBU condition of more than 50KWH battery pack excluding commercial buses and trucks (up to June 30, 2022).

FBR sources said that the decision to increase the regulatory duty was to curtail the rising import bill and outflow of dollars.

They said that the latest measures to discourage the import of luxury vehicles which cost huge foreign exchange every month.