The government has increased regulatory duty on the import of 657 luxury items and notified additional customs duty on the import of 2,200 items, effective from July 1, 2024. The new regulatory duties range from 5% to 55% on the import of hundreds of specified items.
The Federal Board of Revenue (FBR) issued SRO.928(I)/2024, replacing its previous notification SRO 966(l)2022, to implement these changes. The imported goods now subject to regulatory duties include perfumes, watches, sunglasses, imported bicycles, dairy products, honey, dates, cosmetics, shaving cream, soap, clothing, jewelry, dental hygiene products, cheese, curd, potatoes, vegetables, sugar confectionery, tobacco, pet food, leather clothing, and video game consoles, with duties ranging from 10% to 55%.
Additionally, the FBR has imposed a 2% additional customs duty on the import of sub-components, components, and sub-assemblies of automotive vehicles, automotive climate control equipment, and automotive batteries for in-house use, supply to OEMs and assemblers, or sale in the open market. This measure also applies to components for the assembly or manufacture of agricultural tractors, road tractors for semi-trailers, and fully CNG-dedicated vehicles.
Certain items are exempt from the additional customs duty, including seeds, spores for sowing, motor spirit, high-speed diesel oil, liquefied natural gas, polymers, cotton, solar panels, fertilizers, plant and machinery used in manufacturing, and electric vehicles.
These measures aim to manage imports, protect local industries, and generate additional revenue for the government.
