13 Auto Parts to Get More Expensive After Tax Hike

Imported automobile parts are set to become more expensive after Pakistan approved an extra 11% customs duty on 13 more parts and components that the administration notes are now manufactured locally.

Key points

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Meanwhile, the Economic Coordination Committee (ECC) approved the measure after a proposal from the Revenue Division and Federal Board of Revenue. The decision updates SRO 693(I)/2006. It imposes extra duties on imported auto components with locally produced alternatives.

In practice, 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.

Notably, the extra duty seeks to create 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.

For context, the Engineering Development Board and Ministry of Industries and Production recommend further additions as domestic manufacturing expands. New 5-Year Auto Policy Nears Final Approval.

While the measure supports local suppliers, it could raise costs for assemblers and buyers who depend on imported parts. The eventual cost impact will depend on the availability, pricing, and quality of locally manufactured alternatives. The approval does not necessarily mean vehicle rates will rise immediately. Stay Connected with ProPakistani.

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In short, 13 Auto Parts to Get More Expensive After Tax Hike is the central thread here, and readers can expect follow-up reporting as the picture becomes clearer.