In its budget for the fiscal year 2023–2024, the government has suggested eliminating fixed charges and taxes on the import of old and used Asian automobiles with displacements more than 1300cc.
2005 saw the implementation of the existing ceiling on customs and taxes for imported old vehicles up to 1800cc. Due to the government’s decision to remove the restriction, customs authorities will now be free to assess duties and taxes in accordance with the real worth of the vehicle, which is expected to result in higher pricing for imported old automobiles.
The choice is a component of the government’s attempts to increase income and close the deficit in the national budget. The International Monetary Fund (IMF) is also putting pressure on the government to carry out measures to stabilise the economy.
Due to financial difficulties and the delay in the IMF deal, Pakistan’s economy is in disarray. Pakistan has been receiving financial help from the IMF since 2019, but the government has been finding it difficult to adhere to the requirements for this support.
Also Read: Tax Break for Telecom Services Disappearing Mysteriously from Budget 2023–24
Economists and investors are keenly monitoring the government’s budget for the fiscal year 2023–2024. The government’s capacity to carry out reforms and stabilise the economy will be put to the test in this regard.
The administration has suggested a number of initiatives, such as tax increases, budget cuts, and more privatisation. It is uncertain if these would be sufficient to appease the IMF and prevent a default on Pakistan’s debt.
