The Federal Board of Revenue has imposed a new set of taxes on imported vehicles. The taxes have increased under Statutory Regulatory Order (SRO) 504(I)/2017.

This means that there will be a surge of up to 60% in ad valorem regulatory duty on old and new imported cars, including SUVs and Jeeps.

New Percentage Rates

Here are the new percentage rates on each car;

  • (PCT Code – 8703.2323) New SUVs with engine capacity between 1801cc-3000cc – 50% duty
  • (PCT Code – 8703.2323) Used SUVs with engine capacity between 1801cc-3000cc – 60% duty
  • (PCT Code – 8703.2329) New cars and jeeps with engine capacity between 1801cc-3000cc – 50% duty
  • (PCT Code – 8703.2329) Used cars and jeeps with engine capacity between 1801cc-3000cc – 60% duty
  • (PCT Code – 8703.2490) New cars and jeeps with engine capacity over 3000cc – 50% duty
  • (PCT Code – 8703.2490) Used cars and jeeps with engine capacity over 3000cc – 60% duty
  • (PCT Code – 8703.3223) New SUVs with engine capacity over 2000cc – 50% duty
  • (PCT Code – 8703.3223) Used SUVs with engine capacity over 2000cc – 60% duty
  • (PCT Code – 8703.3225) New All Terrain Vehicles (SBU) – 50% duty
  • (PCT Code – 8703.3225) Used All Terrain Vehicles (SBU) – 50% duty
  • (PCT Code – 8703.3229) New cars and jeeps with engine capacity over 2000cc – 50% duty
  • (PCT Code – 8703.3229) Used cars and jeeps with engine capacity over 2000cc – 60% duty
  • (PCT Code – 8703.3390) New cars and jeeps with engine capacity over 2500cc – 50% duty
  • (PCT Code – 8703.3390) Used cars and jeeps with engine capacity over 2500cc – 60% duty
  • (PCT Code – 8703.9090) Other types of new vehicles – 50% duty
  • (PCT Code – 8703.9090) Other types of used vehicles – 60% duty

*Note: The above listed regulatory duties are not applicable on electric hybrid vehicles.

The reason behind the increase in tax is to improve revenue generation. What are your thoughts about this?

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