The Government has officially announced the resumption of vehicle imports after a five-year suspension, effective February, with a revised excise duty structure detailed in a special gazette notification issued on January 11.
Signed by the President in his capacity as the Minister of Finance and Economic Development, the gazette outlines excise duties ranging from 200% to 300% for vehicles not exceeding 10 years from their manufacture date. The rates are categorized based on vehicle age, engine capacity, fuel type, and configuration.
Key Highlights of the New Excise Policy:
- Passenger Vehicles: Duties range from 200% to 300% for vehicles under 10 years old.
- Modified Vehicles: Specific categories, such as those carrying fewer than 13 passengers, are taxed at 300% if less than two years old.
- Engine Capacity-Based Rates: Vehicles with engine capacities between 1,000cc and 1,500cc are taxed at Rs. 3,850 to Rs. 4,450 per cubic centimetre (cc), while engines exceeding 3,000cc attract duties of up to Rs. 13,300 per cc, depending on age.
- Hybrid and Electric Vehicles: Additional rates apply, with electric vehicles facing duties of 200% for units older than 3.5 years and up to 300% for newer models, influenced by motor type and battery capacity.
The Government’s move to reintroduce vehicle imports with increased excise duties aims to balance economic recovery with revenue generation.