Pakistan has approved an additional 11% customs duty on 13 imported automobile parts and components that are now manufactured locally, a move aimed at protecting domestic manufacturers and promoting local production.
The Economic Coordination Committee (ECC) approved the measure following a proposal from the Revenue Division and the Federal Board of Revenue (FBR). The decision expands the scope of SRO 693(I)/2006, which imposes additional duties on imported auto parts with locally available alternatives.
The newly covered components reportedly include tyres for heavy commercial vehicles, number plates, reflectors and brackets, footrests, wheel assemblies, windscreens, seat bases, tail boxes, and various covers, plates, and decorative parts.
According to the Revenue Division, more than 1,200 Pakistan Customs Tariff codes for automobile parts and components are already covered under the existing notification. Additional-duty rates vary depending on the localization status of the parts.
The Engineering Development Board and the Ministry of Industries and Production have been recommending further additions as domestic manufacturing capacity expands.
The latest measure is expected to make imported components more expensive relative to locally manufactured alternatives, providing additional tariff protection to domestic suppliers. However, it could also increase costs for vehicle assemblers and buyers who rely on imported parts.
The actual impact on vehicle prices will depend on the availability, quality, and pricing of locally produced components. The approval does not necessarily mean vehicle prices will increase immediately.