The government has reduced customs duty on the import of equipment for small vehicle assembly. The revenue division has issued an amendment notification in this regard as well.
The notification suggests that the customs duty for the assembly kits of cars with 1000cc or smaller engines has been reduced from 30% to 15%. Also, the customs duty on the imports of tire tubes has been reduced from 25% to 16%.
Moreover, the government has reduced the customs duty for older models with similar engine displacements from 32.5% to 30%. The notification adds that the 15% concession is valid for three years and for the Engineering Development Board (EDB) certified new model cars only.
The State Bank of Pakistan (SBP) has eased the import sanctions on Completely Knocked Down (CKD) kits for local car assemblers.
In an official notification, SBP stated that the central bank has decided to undo the import restrictions from January 2, 2023. The decision is to allow for the acceptance of import transaction requests already filed with the SBP.
The removal of import sanctions and the reduction of import duties on small cars will enable companies like Pak Suzuki, Kia Lucky, Prince, and other small car makers to reinvigorate their production and sales.