ANNOUNCEMENT 04 Jan 2013In January 2013, the government of Pakistan announced a targeted tax change.
NUMBER OF INTERVENTIONS
Notificaiton SRO 09(I)/2013
On 4 January 2013, Pakistan provided exemption from payment of additional customs duty at the rate of 32.5% applicable on the import of components and sub-components in any kit form by a manufacturer of motorcycles of 100cc or above with new technology. The exemption is available for a period of 5 years from the start of production.
The exemption is conditional on a localisation level of at least 25% at the start of production and at least 85% by the end of five years.
The measure was replaced in October 2013 (see related measure).
This measure is likely to have mixed effects on foreign commercial interests. Hence it is reported here as an "amber" measure.