ISLAMABAD: The government has decided to reduce taxes on the import of old vehicles in accordance with the demands of the International Monetary Fund (IMF).
According to sources, a proposal has been put forward in the upcoming fiscal year’s budget to allow the import of vehicles that are up to 5 years old, along with reductions in Additional Customs Duties and Regulatory Duties.
Sources indicate that reforms are being proposed in the Fifth Schedule of the Customs Act to prevent new regulatory duties from being imposed on the auto sector.
Additionally, there is an indication to reduce tariffs on old vehicles by 10% annually. The removal of non-tariff barriers on the auto sector has also been recommended to promote growth in the industry.
The government’s goal is to bring the average tariff on the auto sector below 6% by 2030, which is expected to make imports cheaper and boost the domestic industry.
It is noteworthy that the next fiscal year’s budget will be presented today in the National Assembly, with the potential to impose approximately Rs. 2,000 billion in new taxes.
