The federal government on Saturday said auto sector tariffs are being redesigned in line with the National Tariff Policy (NTP which could lead to sharp reduction in local car prices.
Commerce Secretary Jawad Paul told the National Assembly Standing Committee on Finance that if the NTP is fully implemented, customs duties on cars, jeeps and auto parts could be reduced by 25-50 percent, bringing overall maximum tariff rates down from 156 percent to around 74 percent.
The reform plan would lower prices for consumers but expose local assemblers to stronger competition from imports.
He added that there is currently “no deviation” from the approved tariff roadmap and the second-year reforms involve cuts across thousands of tariff lines. He said duties on most categories will gradually decline under the policy.
Still, the tariff overhaul remains under review due to disagreements within the government and concerns raised by the International Monetary Fund (IMF), which has not endorsed some of the proposed measures.
One key dispute involves the extent and speed of tariff reductions. The government is racing against time as the current auto policy expires on June 30, while budget and legislative approval deadlines are approaching.
The Commerce Secretary added that the proposed second-year tariff adjustments could reduce government revenue by an estimated Rs. 143.4 billion.
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No they won’t and imf already rejected it