ISLAMABAD: The government of Pakistan has decided to remove the five-year age restriction on imported used cars and reduce regulatory duty on their import, the National Assembly Standing Committee on Finance was told.
The committee meeting was chaired by Syed Naveed Qamar. Secretary of Commerce Jawwad Paul briefed members on changes in the country’s tariff policy, with a focus on vehicle import rules.
Officials said the five-year ban on importing used cars is being lifted. Regulatory duty on such imports will also be cut from 40 percent to 30 percent. The move is aimed at improving consumer welfare and opening up the local market.
Jawwad Paul said the National Tariff Policy is gradually lowering various tariffs and the entire tariff structure is being digitized. He added that regulatory duty was 50 percent last year and has now been reduced to 20 percent. Under the tariff policy, the Fifth Schedule will also be fully rationalized.
The secretary revealed that the Personal Baggage Scheme for imported cars was widely misused in the past. Names and passports of overseas Pakistanis who had stayed abroad for 180 days were used illegally for such imports.
He clarified that 62 safety standards now applicable to imported vehicles will also be strictly enforced on locally manufactured cars.
Committee Chairman Syed Naveed Qamar said the local auto industry had been given too much protection, which allowed an auto mafia to block car imports. He said local manufacturers had insisted that only three companies should produce vehicles in the country and no cars should come from abroad.
Naveed Qamar expressed hope that allowing foreign cars will increase competition in the market and lead to lower car prices.
The committee also discussed US tariff policy. Member Dr Nafisa Shah asked what tariffs the United States had imposed on Pakistan after applying tariffs worldwide. The secretary said the US imposed a 10 percent tariff on everyone to cover its trade deficit, but the US Supreme Court later struck down that decision.
