The list includes everything from perfumes to tractor parts.

ISLAMABAD: The Federal Board of Revenue (FBR) has announced a significant increase in customs duties on a wide range of imported goods, effective July 1, 2024. This move aims to generate additional revenue for the government and potentially curb the import of luxury and non-essential items.

The most notable change is the imposition of a 2% additional customs duty (ACD) on over 2,200 items, including components for the assembly of vehicles, tractors, and other machinery.

This ACD applies to goods previously subject to zero percent duty. Additionally, the FBR has levied regulatory duties (RD) ranging from 5% to 55% on 657 luxury and non-essential items.

Among the items facing increased duties are:

• Cars, Jeeps, Light Commercial Vehicles (CKD) exceeding 1,000cc: 7% ACD
• Heavy Commercial Vehicles (CKD): 7% ACD
• Perfumes and Sprays: 20% RD
• Watches: 30% RD
• Sunglasses: 30% RD
• Imported Cycles: 10% RD
• Dairy Products: 20-25% RD
• Natural Honey: 30% RD
• Dates and Other Fruits: 25% RD
• Cosmetics: 55% RD
• Shaving Cream and Soap: 50% RD
• Gents and Ladies Apparel: 10% RD
• Imported Jewelry: 45% RD
• Oral Hygiene Products: 50% RD
• Cheese and Curd: 25% RD
• Potatoes and Other Vegetables: 50-55% RD
• Sugar Confectionery: 40% RD
• Tobacco: 50% RD
• Pet Food: 50% RD
• Leather Apparel and Accessories: 50% RD
• Video Game Consoles and Machines: 50% RD

The FBR has clarified that certain imports will be exempt from these new duties, including Imports under specific notifications: SRO.678, Chapter 99 of the First Schedule of the Customs Act, Temporary Importation Scheme, Fifth Schedule to the Customs Act, and others.

Also exempted are specific items such as special steel round bars and rods, rubber aprons and cots, vehicles (CBU) by new entrants, input materials for auto parts manufacturing, and electric vehicles (2-3 wheelers) till June 30, 2025.

Read More: Revenue Collection Target Exceeded: Finance Minister Praises FBR’s Outstanding Efforts

The FBR’s move is expected to have a significant impact on the import sector and consumer prices. The government hopes that these measures will help to improve the country’s trade balance and reduce reliance on foreign imports.

However, the increased duties are likely burden consumers and businesses, potentially hindering economic growth.

Sindh implements added tax on air tickets, property, vehicles

The Sindh government has implemented a series of new tax measures for the fiscal year 2024-25, expected to generate an additional revenue of Rs76 billion.

These new taxes will affect a wide range of sectors, including educational institutions, hospitals, insurance companies, and petrol pumps.

– Air travel: Passengers will be required to pay Rs50 on domestic air tickets and Rs400 on international tickets.

– Property sector: There will be new charges imposed on shops, flats, and land transactions. Businesses forming partnerships will need to pay a tax of Rs5,000.

– Auto sector: Owners of cars and jeeps with engine capacities above 3000cc will be taxed Rs350,000, while locally manufactured vehicles with engine capacities of 2000cc will incur a Rs5,000 tax.

– Petrol pumps and CNG stations: These will face an annual tax of Rs20,000. This tax will also apply to farmhouses, private hospitals, clinics, guest houses, and event halls.

– Educational institutions: Institutes charging an annual fee exceeding Rs500,000 will be subject to new taxes. Veterinary hospitals and gaming centres will also fall under the new tax regime.

These measures aim to bolster the Sindh Revenue Board’s collection, contributing to the province’s fiscal stability and funding for development projects. The new tax regime reflects the government’s efforts to broaden its tax base and improve public services through increased revenue.