Duty collection from imported vehicles surges by 57.7pc


KARACHI: The collection of customs duty from imported vehicles has increased sharply by 57.7 percent due to higher imports and revision in duty structure.
State Bank of Pakistan (SBP) in its quarterly report for the period July – September 2017 said that collection of duty from vehicles, which constitutes around 54 percent of total custom duty collection, surged by 57.7 percent both due to higher import as well as revision in duty structure on import of vehicles.
Moreover, in October 2017, the government further increased regulatory duties on non-essential items with a dual objective to protect local industry and to correct the external sector imbalance.
The central said that it is expected that the initiative may somewhat discourage imports of non-essential items and may generate additional revenues.
The government, in addition to imposition of regulatory duty on the import of luxury vehicles, the concessionary duty on the import of hybrid vehicles above 2500 cc was also withdrawn in budget FY18.