Even in the latest fiscal budget, the car parts sector seemingly remains an afterthought. The official budget document available with ProPakistani states that the government has imposed a massive customs duty (CD) rate on the import of several car components.
According to the details, the government has set a 35% CD rate on the import of car components. The same rate has been applied to all car parts regardless of how basic or complex they are.
The list of some of the most common parts include:
- Protective strips
- Luggage compartments
- Interior panels and padding
- Water and air hoses and channels
- Bumper and impact braces
- Spare tires and parts thereof
- Mounts, clamps, dampeners, and other fitment components
- Engine and transmission assembly
- Suspension and brake components
- Wheels and tires
- Exhaust system
- Electrical components
The taxes on such basic components are likely to act as deterrents in car price control or reduction. For the parts importers, the high CD rates are likely to be a grave challenge.