We’ll almost make it
Impossible to buy imported
Cars: Miftah Ismail

Recently GOVT. raises regulatory duties on auto imports to 100%

According to Mifta, the purpose of increasing the RD is to curb the import, sale and purchase of imported luxury vehicles. “These products will not [easily] be imported, or at least not in their final state, because we will be charging high tariffs. Cotton, cooking oil and wheat will be my priorities because I don’t have enough money. I wouldn’t put the car or the iPhone first,” he says.

islamabad : Pakistan has increased the charge per unit of regulatory duty to 100 percent on imports of motor vehicles into the country . The Federal Crude Board also Known as Federal board of Revenue (FBR) has issued SRO 1571(I)/2022 to increase the statutory duty rate from 90% to 100% on imports of motor vehicles. To implement the new rate of regulatory duty, FBR has amended SRO 966 (I) / 2022, issued on 30, 2022, with immediate notification. The 100% tax rate was applied to imported vehicles, including: imported complete units (CBUs); CBU 4X4 car; Vehicles with a displacement of more than 1000cc but not more than 1300cc; Sports utility vehicle. Legal import duties on motor vehicles are strictly regulated. due to the large amount of foreign exchange reserves Previously, the government banned the import of CBU cars on May 19, 2022 to support the balance of payments and prevent the depreciation of the rupee. However, on August 20, 2022, the government decided to lift the ban under pressure from the International Monetary Fund (IMF). Finance Minister Miftah Ismail has already signaled the imposition of a regulatory tax to prevent the importation of luxury and non-essential goods.

Recently Pakistan lifted the ban, and Now they are imposing heavy taxes to make the import of vehicles Nearly impossible

A ban on all luxury and non-essential imports was lifted on Friday amid a severe foreign exchange crisis. The Department of Commerce issued SRO 1562 (I)/2022 to lift the ban on luxury and non-luxury items, including automobiles, mobile phones and luxury household appliances. On May 19, 2022, the government passed Circular 598(I)/2022, which completely bans the import of these products in order to avoid a serious balance of payments and economic crisis as well as a depreciation of the rupee. Despite the ban, the rupee fell to a record low of Rs 239.94 against the US dollar on 28 July 2022. Notably, despite the ban on imports of luxury goods, foreign exchange reserves have been sharply reduced. Government. Pakistan decided to lift import ban on goods Pakistan’s foreign exchange reserves rose by $52 million in the week ending August 12, 2022. The country’s foreign exchange reserves amounted to US$13.613 billion in the week ended August 12, 2022 compared to US$13.561 billion a week earlier on August 5, 2022. The country’s foreign exchange reserves hit a record of on August 27, 2021 $27.228 billion. Since then, foreign exchange reserves have fallen by $13.615 billion. The Banco del Estado’s official foreign exchange reserves increased by $67 million to $7.897 billion for the week ended August 12, 2022, compared to $7.83 billion a week ago. More: A 15% surcharge will be levied on customs clearance of prohibited prohibited items and the central bank held a record $20.146 billion in foreign exchange reserves for the week ended August 30, 2019. 27th, 2021. Since then, SBP’s official reserves have fallen by $12.249 billion. The country made this decision to meet the conditions for a loan from the International Monetary Fund (IMF). At a press conference a day earlier with members of the government’s economic team, Miftah Ismail said the import ban on non-luxury items had been introduced in line with IMF requirements. After much debate, the IMF finally announced that its board would meet on Aug. 29 to consider Pakistan’s request for a $1.17 billion grant, Mifta said. The finance minister said the government had also met all of the lender’s requirements while bridging the $4 billion funding gap – after the friendly countries agreed to provide financial assistance to Pakistan. He said that after the import ban , it will be easier for the government to import essential goods . what matters to the masses “When our resources are limited and we have to feed a large population, our priority automatically becomes [country]. We have to choose between importing cars and wheat. That’s why we banned it. Regarding food”

Banning of Imported Vehicles has consequences that’s why Government is going to add heavy taxes instead of banning it,

The government had banned the importation of 38 items, but realizing the haste with which the move was announced, the ban was later lifted on most items except three items. Completely Built (CBU) vehicles, cell phones and electronics. The government has not yet realized that banning the import of CBU vehicles without analyzing the import list of fully knock-down (CKD) vehicles is also a mistake that needs to be corrected. Local assemblers imported about $1.8 billion worth of CKD units, while the total import impact of all prohibited items was estimated at less than $800 million. While the import ban on luxury vehicles like SUVs can be seen as a step in the right direction, the import ban on hybrid electric vehicles and small fuel-efficient cars is completely wrong. Although the recent law banning imports will not have much of an impact, the government was wrong when it banned fuel-efficient cars and cars with displacements of less than 1,000cc because all cars built in the country are comparable. ineffective and will have a significant impact on the already inflated fuel import bill. An analysis of a mileage of about 1km can be done in a combustion engine car versus a hybrid car and multiplied by the amount of fuel import. We will be worse off with a ban on fuel efficient hybrid electric vehicles. Furthermore, the ban on vehicle imports under the Uphaar Scheme is false as it was a source of foreign exchange for the country as overseas Pakistanis had to pay duties in the form of foreign exchange through banking channels to Pakistan. It was an important source of revenue in the form of duties and other taxes. Domestic auto complexes have been protected for a very long time. They are in the country to exploit customers. The Ministry of Industry and Production officials and the so-called technicians of the Engineering Development Board are nothing more than agents manipulated by the auto assembly giants. Without competition, customers are at the mercy of these manipulators. Vehicle prices in Pakistan have increased again in lakhs. If we cannot produce cars economically, we should not start car production after us and have good exports. It did so only by opening up its economy, not banning or shutting it down.