FBR Announces A New Tax System for Imported Car Parts

[TomCat]

The Federal Board of Revenue (FBR) has decided to do away with the system of clearing inbound automotive parts on weight basis. In the coming days, custom duties and other taxes on the imported automotive parts will be imposed on per unit basis.
Earlier this month in Karachi, PAAPAM representatives held a meeting with senior FBR officials lamenting the losses incurred to the national exchequer due to the current system.

After the meeting, FBR directed its Evaluation Directorate to shift to unit-based system for clearance of imported automotive parts by rendering changes in the weight-based system.
The new system will come into effect from the next month which will help raise billions in taxes.
The Pakistan Association of Automotive Parts and Accessories Manufacturers (PAAPAM) has lauded the FBR’s decision saying the adoption of new system will help the country on the economic front.

Source : FBR Announces A New Tax System for Imported Car Parts

 

[TomCat]

@Khafee @AliYusuf @aliraza @!eon Any comments on this new policy's effect on car prices ? As i don't know the rates, i can't comment but this statement "which will help raise billions in taxes. " ,i believe this will make cars even more expensive

 

[Khafee]

@Khafee @AliYusuf @aliraza @!eon Any comments on this new policy's effect on car prices ? As i don't know the rates, i can't comment but this statement "which will help raise billions in taxes. " ,i believe this will make cars even more expensive

The rich get richer, the poor get poorer, lets see how long it lasts.

 

[TomCat]

The rich get richer, the poor get poorer, lets see how long it lasts.

A corrupt, failed society. Seriously, a trash corolla (considered a LUXURY and God of cars here), costs around 3.6 Million PKR. Use market is even higher after a couple of years/decades. On the other hand, UAE/USA, heaven to buy real luxury cars at cheap price, can't afford a new? Buy a used one at almost half price.

 

[Khafee]

A corrupt, failed society. Seriously, a trash corolla (considered a LUXURY and God of cars here), costs around 3.6 Million PKR. Use market is even higher after a couple of years/decades. On the other hand, UAE/USA, heaven to buy real luxury cars at cheap price, can't afford a new? Buy a used one at almost half price.

The problem lies with how car manufacturers are regulated.

 

[TomCat]

The problem lies with how car manufacturers are regulated.

I know this system "KHEP", big industries like Indus Motors, Honda Atlas, even they use this at a huge scale, import OEM, parts, assemble them, sell them. Don't properly pay taxes to FBR so-called "Taxes ki waja se gari mehngi hai", a unit costs around 8Lacs, keep 16-18 Lac Profit on a single car, INSANE... Very INSANE.

 

[!eon]

I know this system "KHEP", big industries like Indus Motors, Honda Atlas, even they use this at a huge scale, import OEM, parts, assemble them, sell them. Don't properly pay taxes to FBR so-called "Taxes ki waja se gari mehngi hai", a unit costs around 8Lacs, keep 16-18 Lac Profit on a single car, INSANE... Very INSANE.

But this would affect second hand parts importers. Like engine and gearbox importers. Till now it was easy for a poor guy to change the engine on a 40 years old car.
They aren't decreasing govt expenses, which are the actual culprits and putting more more burden on poor man.

 

[TomCat]

But this would affect second hand parts importers. Like engine and gearbox importers. Till now it was easy for a poor guy to change the engine on a 40 years old car.
They aren't decreasing govt expenses, which are the actual culprits and putting more more burden on poor man.

Shahana un necessary spendings....

 

[!eon]

Shahana un necessary spendings....

and useless projects acting like money extracting funnels.

 

[aliraza]

@Khafee @AliYusuf @aliraza @!eon Any comments on this new policy's effect on car prices ? As i don't know the rates, i can't comment but this statement "which will help raise billions in taxes. " ,i believe this will make cars even more expensive

thisnis to help the rich class as all high performance cars r lighter in weight
or maybe another theory is to be fuel efficient so it might be pushed to buy loghter efficient cars rather then prados with 2 ton body but 3.0 engine doesn’t make sense at all