The federal government has introduced up to a 55% import duty on various luxury items in the new fiscal budget for 2024-25. This imposition of regulatory duties is expected to lead to a notable increase in prices for these goods across Pakistan.
List of luxury goods:
- Perfumes and Sprays: 20% RD
- Watches: 30% RD
- Sunglasses: 30% RD
- Imported Cycles: 10% RD
- Imported Dairy Products: 20-25% RD
- Natural Honey: 30% RD
- Imported Dates and Other Fruits: 25% RD
- Cosmetics: 55% RD
- Shaving Cream and Soap: 50% RD
- Gents Caps, Overcoats, Jackets, Trousers, and Shirts: 10% RD
- Female Overcoat, Jackets, Skirts, Trousers: 10% RD
- Imported Jewelry: 45% RD
- Oral or Dental Hygiene Products: 50% RD
- Cheese and Curd: 25% RD
- Potatoes, Other Vegetables, Mixture of Vegetables: 50-55% RD
- Sugar Confectionery (including white chocolate): 40% RD
- Tobacco, Partly or Wholly Stemmed or Stripped: 50% RD
- Dog or Cat Food: 50% RD
- Leather Clothing, Accessories: 50% RD
- Video Game Consoles and Machines, Table or Parlour Games: 50% RD
- Cars, jeeps, and light commercial vehicles (CKD) over 1,000cc face higher ACD. Perfumes, watches, sunglasses, dairy products, and various foods face RD rates varying from 10% to 55%.
Certain imports, such as those under specific notifications and temporary import schemes, are exempt from these new duties.
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The FBR’s latest measures are expected to impact both the import sector and consumer prices significantly. While aimed at improving the trade balance and reducing reliance on imports, these higher duties may pose challenges for consumers and businesses, potentially slowing economic growth.
