The Federal Government has implemented a regulatory duty on 657 luxury goods imports and announced additional customs duties on 2,200 items.
The Federal Board of Revenue (FBR) issued a notice stating a 2% Additional Customs Duty (ACD) on previously duty-free items.
Effective July 1, 2024, ACD rates of 2%, 4%, 6%, and 7% will apply to a broad spectrum of goods, per SRO 929(I)/2024. Higher duty categories include 7% ACD on imported cars, jeeps, and commercial vehicles over 1,000 cc in Completely Knocked Down (CKD) condition.
Read: Surge in Packaged Milk Prices Following 18% New Sales Tax
Luxury items face significant duties: perfumes and sprays at 20% RD; watches and sunglasses at 30% RD; bicycles at 10% RD; dairy products and natural honey at 20-30% RD; various imported fruits at 25% RD; cosmetics at 55% RD; shaving creams and soaps at 50% RD; and apparel items such as caps, overcoats, and trousers at 10% RD. Jewellery attracts a 45% RD, while oral hygiene products like dental floss face a 50% RD. The government has set regulatory duties ranging from 25% to 55% on food items, including cheese, curd, and certain vegetables. Luxury confectionery, tobacco products, pet foods, and leather goods incur duties of 40-50%. Additionally, video game consoles and related games are under a 50% regulatory duty.
Additionally, a 2% ACD now applies to imports of automotive sub-components, climate control systems, and batteries. These components are integral to the production of agricultural and road tractors and CNG-dedicated vehicles. This measure extends to in-house use, distribution to original equipment manufacturers (OEMs) and assemblers, and sales in the open market.
