Govt imposes ‘heavy duty’ on luxury items by 100-150%
The Federal Board of Revenue (FBR) has imposed/raised time-bound regulatory duties and Additional Customs Duties (ACDs) on the import of over 600 luxury and non-essential items including vehicles, chocolates/electronics/cosmetics, home appliances, furniture, fruits/vegetables/meat/fish, footwear etc.
45 percent RD on the import of military weapons and raised RD from 15 to 100 percent on the import of new 4×4 vehicles (CBU), 15 percent to 100 percent on the import of new minivans (CBU), 70-90 percent RD to 100 percent on the import of all-terrain vehicles (4×4), and 15 percent to 100 percent on the import of new sport utility vehicles/SUVs 4×4 have been imposed.
Miftah, in a press conference about lifting the import ban last week, said that after the imposition of RDs, if a person wants to import a car for Rs300-400 million, which is originally worth Rs60 million, they can — indicating that the government did not have plans to increase imports at this time.
However, the government could not jack up RDs and ACDs from 400-600% as earlier claimed by the finance minister.
The increased rates of RDs would remain applicable from August 22, 2022, to February 21, 2023, the FBR notification said.
The federal government has also doubled the regulatory duty on imported meat and fish.
The duty on imported jam jelly increased from 20 to 49%, chocolate, cocoa powder increased from 10 to 49%, imported porridge, flour increased from 10 to 35%, and the duty on branded imported dry fruits increased from 20 to 74%.