In the most recent fiscal budget, the automotive parts sector appears to be given insufficient consideration. As per the official budget document that ProPakistani has obtained, the government has imposed a significant customs duty (CD) rate on the import of numerous automotive components.
The government has earmarked a CD rate of 35% on the import of automotive parts. This rate has been uniformly applied to all automotive parts, irrespective of their complexity or simplicity.
Among the commonly imported parts subjected to this rate are:
- Protective strips
- Luggage compartments
- Interior panels and padding
- Water and air hoses and channels
- Bumper and impact braces
- Spare tires and related parts
- Bodywork components
- Mounts, clamps, dampeners, and other fitting parts
- Engine and transmission assemblies
- Suspension and brake components
- Wheels and tires
- Exhaust systems
- Electrical components
Read More: New Budget Proposal May Drive Up Prices of Imported Used Cars Above 1300cc
The taxation on these fundamental components could discourage attempts to control or reduce car prices. For those who import automotive parts, the steep CD rates are anticipated to pose a significant hurdle.
