Imported automobile parts are set to become more expensive after Pakistan approved an additional 11% customs duty on 13 more parts and components that the government says are now manufactured locally.
The Economic Coordination Committee (ECC) approved the measure following a proposal from the Revenue Division and Federal Board of Revenue. The decision updates SRO 693(I)/2006, which imposes additional duties on imported auto components with locally produced alternatives.
The newly covered items reportedly include tyres for heavy commercial vehicles, license plates, reflectors and brackets, footrests, wheel assemblies, windscreens, seat bases, tail boxes, and various covers, plates, and decorative components.
The additional duty aims to make imported components less competitive against domestic products, giving local manufacturers greater tariff protection.
According to the Revenue Division, more than 1,200 Pakistan Customs Tariff codes for automobile parts and components already fall under the SRO, with additional-duty rates varying by localization status.
The Engineering Development Board and Ministry of Industries and Production recommend further additions as domestic manufacturing expands.
While the measure supports local suppliers, it could raise costs for assemblers and buyers who depend on imported parts. The eventual price impact will depend on the availability, pricing, and quality of locally manufactured alternatives.
The approval does not necessarily mean vehicle prices will increase immediately.
Via: PakWheels
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