Overview
The government has decreased custom duty on the import of small vehicle assembly equipment. In this context, the revenue division has also issued an amending notification.
Notification of Custom Duties
According to the notification, the customs duty on assembly kits for cars with 1000cc or smaller engines has been decreased from 30% to 15%. In addition, the customs duty on tire tube imports has been cut from 25% to 16%.
In addition, the government has decreased the customs charge on older vehicles with comparable engine displacements from 32.5% to 30%. The letter further states that the 15% discount is only valid for three years and applies to new model cars certified by the Engineering Development Board (EDB).
State Bank of Pakistan Statement Custom Duties
The State Bank of Pakistan (SBP) has relaxed import restrictions on Completely Knocked Down (CKD) kits for local automakers.
The SBP said in an official announcement that the central bank has decided to lift import restrictions beginning January 2, 2023. The decision is to allow the SBP to accept import transaction requests that have already been lodged.
The elimination of import prohibitions and the decrease of import levies on small automobiles will allow companies. Such as Pak Suzuki, Kia Lucky, Prince, and other small car manufacturers to rev up production and sales.
