The federal government has proposed to increase the regulatory duty on the import of used vehicles in the upcoming federal budget, well-informed sources told ProPakistani.
Sources said a 30 percent increase in regulatory duty has been proposed on vehicles having car engine capacity of more than 1800 cc. This could result in the duty rate on large vehicles rising from the current 70 percent to as much as 100 percent.
Additionally, there is a proposal to impose a 15 percent duty on used vehicles of up to 1800 cc. However, both new and old hybrid vehicles up to 1800 cc will remain exempt from the duty.
Sources said the proposed hike has been tabled for the new budget in view of a 255 percent surge in car imports witnessed last year on account of low regulatory duty.
In the first ten months of fiscal year 2023-24, Completed Built Units (CBUs) worth $210 million (Rs. 58 billion) were imported, while car parts worth Rs. 170 billion were imported for local car assembly, with Rs. 600 million spent in foreign exchange for procuring these parts from international markets.
The post Used Cars Likely to Become More Expensive Next Fiscal Year appeared first on ProPakistani.
