Govt proposes to reduce taxes on imported used vehicles

Islamabad: The government has also proposed to the International Monetary Fund (IMF) to reduce taxes on the import of old vehicles, reportedly.

According to media reports, the upcoming budget proposes to import five-year-old vehicles, while the additional customs duty on vehicles is also being phased out, and regulatory duties are also being reduced.

It is also reported that reforms are being proposed in the Fifth Schedule of the Customs Act, and it is recommended not to impose new regulatory duties on the auto sector. It is also considered to reduce the tariff on old vehicles by 10 percent annually.

It is recommended to remove non-tariff barriers on the auto sector and reduce the average tariff on the auto sector to less than 6 percent by 2030, added the report.

It is pertinent to note that the budget for the next fiscal year will be presented in the National Assembly today, in which new taxes worth about Rs2,000 billion will be imposed.