by The Federal Board of Revenue (FBR) has recently revised the customs values for the import of gas and electric water heaters, a move aimed at ensuring fair trade practices and minimizing under-invoicing in the market. This adjustment, issued under the Customs Act, 1969, aligns the valuation of imported appliances with current international prices and local market dynamics.
Why the Revision Matters
Water heaters—both gas and electric—are widely used across Pakistan, especially during winter months. The import of these appliances is a significant segment of the electronics market. However, discrepancies in declared import values have often resulted in revenue losses for the national exchequer. The new valuation measures by FBR are designed to curb such practices and bring uniformity to the pricing structure.
FBR Revises Customs Value on Import of Gas/Electric Water Heaters.
Key Highlights of the Revision
- The revised customs values are now based on updated global price trends and import data.
- The changes apply to all categories of water heaters, including both branded and unbranded models.
- Importers will now be required to declare the updated customs values when clearing shipments through customs.
Impact on Importers and Consumers
For importers, the revision may result in higher customs duties, depending on the price range of the imported appliances. While this could lead to a slight increase in the retail prices of water heaters, it also ensures a level playing field for compliant businesses.
For consumers, the impact might be noticeable in terms of price adjustments, but the move could also encourage the availability of better-quality products since under-invoicing often results in substandard imports.
FBR’s Broader Efforts
This step is part of FBR’s broader strategy to enhance transparency in the import sector and boost tax collection. By regularly updating customs values for essential appliances and electronics, the government aims to reduce revenue leakages and foster fair competition in the market.
