Budget 2024: Govt to abolish import tax exemptions for luxury vehicles

The federal government decided to abolish import tax exemptions for imported luxury vehicles in the budget for the fiscal year 2024-25.

This was announced by Finance Minister Muhammad Aurangzeb in his maiden budget speech on Wednesday.

In a move to discourage the import of high-end cars and boost local industry, the federal government proposed a decision to abolish the import tax exemptions for imported luxury vehicles.

The decision also includes increasing taxes and duties starting from Rs 50,000 on imported vehicles.

The federal excise duty on cement has been increased from Rs 2 to Rs 3 per kg, reflecting the government’s effort to generate more revenue from the construction sector.

The government has decided to end sales tax exemptions and concessional rates, opting instead to impose a standard rate of sales tax on multiple items.

Furthermore, the budget introduces put withholding tax on scrap materials such as copper, coal, paper, and plastic.

Similarly, the government has abolished import duties on imported glass products, likely to support local industries reliant on these materials.

However, import duties on steel and paper products have been increased, which may affect related industries and consumers.