Govt to Increase 50pc Tariffs on the Import of Cars

The government of Pakistan recently reject the suggestion to ban CBU (complete built-up unit) vehicles. But here is a new suggestion to increase the regulatory duty up to 50 percent on imports of EV, hybrid, and gasoline vehicles. This initiative is proposed to reduce the import bill and account deficit of Pakistan.

An official statement from a senior member from the Ministry of Industries and Production (MoIP), this suggestion will first present to the tariff policy board (TPB) to get approval. If TPB passes the proposal then it will be forwarded to the Prime minister for final decision.

According to him, Pakistan can not ban the import of vehicles under WTO rule, but it can increase the tax to slow down the import bill, so the government has only one way to choose the second option. In this regard, it is also proposed to increase the federal excise duty to 10 percent from 5 percent.

Here is a list of cars on which tax increment is proposed;

  • EVs with battery packs over 50 kWh
  • Combustible fuel-powered vehicles (No engine displacement specified)
  • CBU vehicles that come with hybrid powertrains with an engine moment between 1501cc and 1800cc
  • SUVs with an engine moment of 1501cc and above

Here one thing is clear that the reason to do so is to expand the local production of vehicles. And urge people to buy local manufacturing vehicles and not reply on imported cars.

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