The government has implemented several new customs duties as part of its fiscal measures for the fiscal year 2024-25, which began recently. Here’s a breakdown of the key changes:
- 2% Additional Customs Duty on Automotive Components:
- A 2% additional customs duty has been imposed on the import of sub-components, components, and sub-assemblies used in:
- Automotive vehicles
- Automotive climate control equipment
- Automotive batteries
- These are intended for in-house use, supply to OEMs (Original Equipment Manufacturers), assemblers, or sale in the open market.
- Specifically, this duty applies to components used in:
- Manufacturing of agricultural tractors
- Road tractors for Semi-trailers (Prime Movers) of 280 HP and above
- Road tractors for semi-trailers (Prime Movers) of less than 280 HP
- Fully CNG-dedicated vehicles
- 2% Additional Customs Duty on Kit Forms:
- A 2% additional customs duty is now applicable on components imported in any kit form, including:
- Tyres/Tubes used for manufacturing agricultural tractors
- Components for assembly/manufacture of road tractors for semi-trailers and trailers (prime movers) of 280 HP
Read More: Packaged milk prices have increased by 25% due to new taxes
- 7% Additional Customs Duty on CKD Vehicles:
- There is a significant 7% additional customs duty imposed on Completely Knocked Down (CKD) condition vehicles exceeding 1,000 cc. This includes:
- Cars
- Jeeps
- Light commercial vehicles
- Heavy commercial vehicles
These measures are aimed at increasing revenue collection for the government from specific sectors, particularly automotive and vehicle assembly/manufacturing. The additional customs duties are part of broader fiscal policies to manage imports and bolster domestic production capabilities in targeted industries.
