[vc_row][vc_column][vc_column_text dp_text_size=”size-4″]In its budget for fiscal year 2023-24, the government proposes eliminating fixed customs and taxes on the import of old and used Asian cars with displacements greater than 1300cc.
The current duty and tax cap for imported old cars up to 1800cc was implemented in 2005. Because customs officers will now be able to impose duties and taxes based on the real worth of the vehicle, the government’s decision to remove the cap is expected to result in higher pricing for imported secondhand automobiles.
The move is part of the government’s efforts to increase revenue and lower the country’s financial deficit. The administration is also under pressure from the International Monetary Fund (IMF) to adopt economic changes.
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Pakistan’s economy is in disarray as a result of financial difficulties and the delay in the IMF deal. Since 2019, Pakistan has received financial help from the IMF, although the government has struggled to meet the IMF’s terms for sustained aid.
Economists and investors are keeping a careful eye on the government’s budget for fiscal year 2023-24. It is regarded as an important litmus test for the government’s capacity to enact reforms and stabilise the economy.
The government has suggested a range of policies, including tax increases, budget cuts, and increased privatisation. However, it remains to be seen whether these will be sufficient to satisfy the IMF and avoid a debt default by Pakistan.[/vc_column_text][/vc_column][/vc_row]
