Imported automobile parts will cost more after Pakistan cleared an extra 11 percent customs duty on 13 specific components that officials state are currently built inside the country.
The Economic Coordination Committee cleared this step on a recommendation put forward by the Revenue Division and Federal Board of Revenue. This action modifies SRO 693(I)/2006, which levies extra duties on foreign vehicle parts that have domestic substitutes.
The newly affected items include heavy commercial vehicle tyres, license plates, reflectors, brackets, footrests, wheel assemblies, windscreens, seat bases, tail boxes, along with various covers, plates, and decorative items.
This extra tariff seeks to reduce the market competitiveness of foreign parts against domestic goods, offering stronger tariff protection to local makers.
The Revenue Division reports that more than 1,200 Pakistan Customs Tariff codes for vehicle parts already fall under this SRO, with extra duty rates shifting according to localization levels.
The Engineering Development Board and Ministry of Industries and Production suggest further inclusions as domestic production grows.
Even though this policy backs domestic suppliers, it might increase expenses for assemblers and purchasers relying on foreign parts. The final price effect relies on how accessible, priced, and well-made the domestic substitutes prove to be.
Vehicle prices will not necessarily go up right away following this approval.
