Web Desk
The federal government, in its budget announcement for the fiscal year 2023-24, has revealed the removal of duties and taxes limitations on the import of old and used vehicles with 1300cc engine capacity made in Asia.
Finance Minister Ishaq Dar presented the budget to the National Assembly following the approval of the budget proposals by the federal cabinet. He highlighted that duties and taxes on imports of old and used vehicles up to 1800cc engine capacity made in Asia were originally imposed in 2005.
Additionally, Minister Dar announced the discontinuation of duties and taxes limitations for vehicles above 1300cc engine capacity. As a consequence of this decision, it is expected that the prices of vehicles will increase.
Furthermore, the new budget proposes doubling the advance income tax for non-filers when purchasing a car from abroad. Instead of being based on engine capacity, the proposal suggests levying withholding tax on purchase receipts.
The budget also contemplates an increase in regulatory additional customs duty on imported vehicles, with the specific details of this proposal still under consideration.
With these developments, the federal government aims to bring changes to the taxation structure and regulations pertaining to the import of used vehicles. These adjustments may impact the affordability and pricing of imported cars in the country.
