Pakistan Removes 100% Duty on Imported Cars Up to 1800cc: What It Means for You

Are you looking for a used car in Pakistan? If yes, then you may have a reason to rejoice. According to reports, the government has removed the 100% regulatory charge (RD) on the import of second-hand cars up to 1800cc. This means that the prices of these cars will drop significantly, making them more accessible for buyers.

The RD was imposed in August 2022 under SRO1571 (I)/2022 to discourage the import of luxury and non-essential items and to support the balance of payment. The RD was initially valid till February 2023, but it was extended to March 31, 2023. However, after the expiry of the SRO, the RD has reverted back to the rate before August 22. There was no RD on cars up to 1800cc, but there was 70% RD on cars above 1800cc. The latter rate remains unchanged.

The removal of the RD will benefit the importers and the companies that sell completely built units (CBUs) in the country. It will also benefit the consumers who prefer imported cars over locally assembled ones due to their better quality and features. The lack of foreign money has reportedly caused 500 to 700 imported vehicles with varied engine sizes to become stranded at the ports. Additionally, the lower taxes will benefit these vehicles.

However, there is no official confirmation from the Federal Board of Revenue (FBR) or any SRO regarding this matter. Therefore, it is advisable to check with the relevant authorities before making any decision regarding importing a car. The FBR officials have said that they will upload the SRO on their website soon.

The removal of the RD on imported cars up to 1800cc is a welcome step for the car lovers in Pakistan. It will increase the variety and competition in the market and provide more options for buyers. However, it may also have some negative impacts on the local industry, which is already facing challenges due to the shortage of foreign exchange and raw materials. The government should also take measures to support and improve the local car manufacturing sector and ensure a level playing field for all stakeholders.