Luxury and non-essential imports face higher taxes in Pakistan; Check new rates here

ISLAMABAD – Pakistani government is taking stern measures to cut financial losses, and now the import duty on luxury and nonessential items has been jacked up by whopping 55percent. 

Federal Board of Revenue (FBR) made the changes in customs duties on wide range of imported goods in bid to cut the importation of luxury and non-essential items.

With new changes, there will be 2pc additional customs duty (ACD) on over 2000 items, including components used in vehicle and machinery assembly. The apex tax collection agency also introduced regulatory duties (RD) ranging from 5-55pc on hundreds of items.

New Import Duty on luxury items

Cars, jeeps, and light commercial vehicles (CKD) over 1,000cc face higher ACD. Perfumes, watches, sunglasses, dairy products, and various foods face RD rates varying from 10% to 55%.

Several imports, such as those under specific notifications and temporary import schemes, are exempt from these new duties. 

FBR's latest move is expected to impact both import sector and consumer prices. The new measures are aimed at improving trade balance and reducing reliance on foreign imports, these higher duties may pose challenges for consumers and businesses, potentially slowing economic growth.