The Federal Board of Revenue (FBR) Thursday imposed a 10% regulatory duty on the import of motor spirit — a transparent, petroleum-derived liquid that is used primarily as a fuel in internal combustion engines — from June 30, 2022.
According to a notification issued by the FBR, the federal government has imposed regulatory duty at a rate of 10% on the import of motor spirit with the stipulation that the regulatory duty shall not be levied on cargoes for which letter of credit (LCs) had already been opened or were at high seas.
"In the exercise of the powers conferred by sub-section (3) of section 18 of the Customs Act, 1969, the federal government has imposed regulatory duty at a rate of 10% on import of motor spirit (PCT code 2710.1210)," the notification read.
Moreover, the imports of motor spirit where customs duty at a rate of 10% is paid shall be exempted from the levy of the regulatory duty. This notification shall remain in force till June 30, 2022, the FBR added.
It should be noted that following an increase in the regulatory duty retailer would seek revision of the tariff and may go on strike.