FBR Increases Regulatory Duty on Car, Electronics & Other Luxury Items

The Federal Board of Revenue (FBR) has notified of imposition of increased the Regulatory Duty (RD) and Additional Customs Duty (ACD) on the import of cars, electronics and several other luxury and non-essential items in order to discourage their import.

Regulatory Duty, RD, Taxes, Cars, Vehicles, Electronics — FBR Increases Regulatory Duty on Car, Electronics & Other Luxury Items

According to the details, the FBR has imposed the increased Regulatory Duty (RD) and Additional Customs Duty (ACD) on a number of luxury and non-essential items, including vehicles, chocolates, electronics, cosmetics, home appliances, furniture, fruits and vegetables, meat/fish, and footwear.

Furthermore, the increased RDs and ACDs would remain applicable from 22nd August 2022 to 21st February 2023, the FBR notification read. “We are expecting import compression of 60-70%, and it will bring additional revenues to the tune of Rs. 15 billion on a per annum basis.” said FBR chairman, Asim Ahmed.

It is pertinent to mention that RDs and ACDs have been increased by only 100-150% instead of 400-600% as claimed by Finance Minister Miftah Ismail because in order jack up RDs and ACDs more, the Federal Government required permission from the Parliament.

As per the FBR notification, 7% ACD would be applicable on goods falling under tariff slab of 30% and higher slabs as well as slabs of specific rates, except the following which shall be charged at the rate of 2% — goods falling under specified PCT codes and cars, jeeps, light commercial vehicles in CKD condition exceeding 1,000cc and heavy commercial vehicles in CKD condition.

Vehicles/Cars

The Federal Board of Revenue (FBR) has raised the Regulatory Duty (RD) from 15 percent to 20 percent on the import of new 4×4 vehicles (CBU), 5 percent to 100 percent on the import of new Minivans (CBU), 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.

Furthermore, the FBR has imposed 35% Additional Customs Duty (ACD) on the import of vehicles (sport utility vehicles/SUVs 4×4), while Regulatory Duty (RD) has been increased from 5 percent to 100 percent on the import of vehicles with engine capacity exceeding 1000cc but not exceeding 1300cc.

Gadgets and Electronics

Moreover, the FBR has imposed a 5 percent RD on the import of different gadgets, including all types of microphones and stands, loudspeakers, headphones, and earphones. Furthermore, the same has been imposed on all kinds of items consisting of a microphone or one or more loudspeaker, audio-frequency electric amplifiers, electric sound amplifier sets.

The Regulatory Duty (RD) has been raised from 15 percent to 49 percent on the import of LCD, LED, and OLED TVs and Displays, while a 29 percent RD has been imposed on electronic cigarettes and similar personal items like electric vaporizing devises.

The FBR has also imposed an RD of 49 percent on the import of smoking pipes, including pipe bowls and cigars, cigarette holders and related parts.

Home Appliances

Regulatory Duty of 49 percent has been imposed on several home appliances, including electric ovens, electric ranges, electric roasters/grillers, other coffee or tea makers, and toasters.

Telephone Sets

The FBR has raised RD from Rs. 300/set to Rs. 1000/set on import of landline telephone sets with cordless handsets having a value of up to $30 per set. Meanwhile, the RD has been increased from Rs. 3000/set to Rs. 6000/set on the import of telephone sets with cordless handsets (having C&F Value above $30 per set but not exceeding $100 per set).

Spectacles and Glasses

Meanwhile, the RD has been raised from 30 percent to 49 percent on import of spectacles, goggles, and glasses, including corrective and protective.

Chocolates and Other Edibles

The FBR has increased RD on the import of chocolates from 10 to 49 percent; jams, fruit jellies, marmalades, fruit or nut puree, and fruit or nut pastes, obtained by cooking, whether or not containing added sugar or other sweetening matter from 20 percent to 49 percent.

Household Articles & Iron or Steel Items

The Regulatory Duty of 49 percent has been imposed on the import of several household articles, including baths, shower-baths, sinks, washbasins, tableware, kitchenware and iron or steel items, including spoons, forks, ladles, skimmers, and more.

Toiletries

The FBR has imposed 24 percent RD on toilet papers, toilet or facial tissue stocks.

Hair Products and Cosmetics

The Regulatory Duty (RD) has been increased from 10 percent to 49 percent in case of hair products like hair dryers, combs, hair-slides, hairpins, curling pins, curling grips, hair- curlers, and more. Furthermore, the same has been imposed for import of powder puffs and pads for the application of cosmetics or toilet preparations.

Furniture

The RD has been increased to 49 percent from earlier 45 percent on import of furniture and other similar items, including mattress and articles of bedding like bedsheets etc. Furthermore, the FBR has imposed 45 percent RD on the import of luminaires and lighting fittings including searchlights and spotting lights and parts.

Military Weapons

The RD at the rate of 45 percent would be applicable on the import of military weapons and revolvers and pistols. Furthermore, the RD has been increased from 25 to 45 percent on the import of other arms (for example, spring, air or gas guns and pistols, truncheons).

Moreover, the RD has been increased from 20 to 45 percent on the import of other firearms and similar devices, which operate by the firing of an explosive charge.

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