70% RD on used cars above 1800cc continued

The federal government has abolished the regulatory duties (RD) on the import of used cars up to 1800cc but there is still 70 percent RD on cars above the 1800cc, reported the 24NewsHD TV channel. 

In accordance with SRO1571(I)/2022, the Government of Pakistan imposed a 100% regulatory duty on the import of old cars in August 2022. The SRO stated that the RD on these cars would be in place until February 2023; however, the Government ultimately decided to extend that date by one month, to March 31, 2023.

After the end of the deadline, the RD has gone back to the rate before August 22, but as usual, it caused confusion among the people as so-called market experts started saying that the RD has been removed totally from all cars and the rates will be down significantly. But it is not true. There is still 70 percent RD on cars above the 1800cc, reduced from 100%.

If you look at the old SRO of FBR, you will come to know that there was no RD on cars up to 1800cc, while there was 70% on cars above 1800cc. Used automobiles up to 1800cc will have their prices substantially reduced after the regulatory duties expire.

Meanwhile, new cars in this category will also see some price reduction as the government additionally reduced the regulatory duty rates on new cars, which is anticipated to significantly reduce the price of new cars and may aid the automotive industry in navigating the current crisis.