Customs fees on the import of machinery for small car assembly have been decreased by the government. In this respect, the revenue division has also released a notification of an adjustment.
According to the announcement, the customs tax for assembly kits for vehicles with engines of 1000cc or less has been decreased from 30% to 15%. Additionally, the tax on imported tire tubes has been lowered from 25% to 16%.
Additionally, the government lowered the customs charge from 32.5% to 30% for older vehicles with comparable engine displacements. The announcement further states that the 15% discount is only available to new models of automobiles that have been certified by the Engineering Development Board (EDB) for a period of three years.
For regional auto assemblers, the State Bank of Pakistan (SBP) has loosened the import restrictions on Completely Knocked Down (CKD) kits.
The central bank has decided to remove the import restrictions starting on January 2, 2023, according to an official announcement from SBP. The choice allows the acceptance of import transaction requests that have already been submitted to the SBP.
Companies like Pak Suzuki, Kia Lucky, Prince, and other small vehicle manufacturers will be able to revitalize their production and sales thanks to the lifting of import restrictions and the lowering of import levies on small automobiles.