Local Automakers Urge Govt to Make Car Imports More Expensive

The Pakistan Automotive Manufacturers Association (PAMA) has written to Prime Minister Shehbaz Sharif seeking a 15 percent regulatory duty on the import of used vehicles below the 1300 cc category. In a letter to the premier, PAMA said that although a 15 percent regulatory duty has been imposed on the import of used vehicles through the Finance Act, effective July 1st, but to only in the above 1300 cc category, unfortunately, below 1300 cc engine capacity segment has been omitted. The association highlighted that customs import data for the period January- May 2024 indicates that about 62 percent of aggregate import of used cars pertain to below 1300 cc category. To sustain the growth of the local industry to achieve the targets under Auto Policy 2021-26 and to save the industry from the “unfair competition” of import of used vehicles, PAMA has proposed a 15 percent regulatory duty on the import of used vehicles below 1300 cc category. Further, the association said that the SRO 577 (I) 2005 has since been outmoded as it was last updated in 2015, and ever since taxes are levied on taxable values, prevailing then, causing huge loss to the exchequer. It is time now that this SRO is updated to prevailing prices, the letter said.