The government has levied additional duty on luxury goods and revised the rate of duty and tax on import of used vehicles.
Instead of giving blanket exemption, non-governmental organisations (NGOs) will be allowed 100 per cent tax credit subject to filing of return, withholding obligations and complete accounts. This will yield Rs5 billion in taxes.
The government has imposed 4pc duty on pet resin, 8.5pc on bottle grade and film grade of yarn and 15pc on all types of starches, including wheat, maize (corn), potato and manioc (cassava).
The concession in taxes on import of hybrid electric vehicles (HEVs) of up to 1200cc has been reduced to 50pc from 100pc. It will be 50pc for 1201cc to 1800cc and 25pc for 1801cc to 2500cc cars. A 25pc reduction in taxes will be available on import of HEVs of above 2500cc.
The duty and taxes on import of used cars have been increased by 10pc. It will generate an additional revenue of Rs600 million.
The duty and taxes have been increased to $4,800 from $4,400 on import of car of up to 1800cc; to $6,000 from $5,500 for 801cc to 1000cc; to $12,000 from $11,000 on 1001cc to 1300cc; to $16,900 from $15,400 for 1301cc to 1500cc; to $20,500 from $18,700 for 1501cc to 1600cc and to $25,400 from $23,100 for 1601cc to 1800cc cars (Asian makes only, but excluding jeeps).
The government has also proposed regulatory duty on import of luxury goods like cosmetics, chocolates, food preparations and prepared foodstuffs, beverages, mechanical and electrical appliances.
