ISLAMABAD (Kashmir English): The government is considering lifting the restriction on the import of used cars that are up to five years old in a significant shift in the country’s automobile import policy.
The move is expected to benefit traders and consumers alike. The development was revealed by Federal Secretary Commerce Jawad Paul during a meeting of the National Assembly Standing Committee on Finance and Revenue on Saturday.
Briefing the committee on the National Tariff Policy, the commerce secretary said the federal government plans to gradually reduce import duties and rationalize the tariff structure to enhance competition and improve consumer welfare.
He said the government has proposed eliminating Additional Customs Duty over a period of five years. Regulatory duties will also be gradually reduced and eventually brought down to zero, he added.
Under the proposed reforms, Jawad Paul said, customs duties will be capped at a maximum of 15 percent within five years, while the maximum regulatory duty rate will be limited to 20 percent. Lower regulatory duty slabs of 1 percent, 2 percent, and 2.5 percent are also proposed to be abolished.
As part of the proposed changes, the secretary said, the regulatory duty on imported used vehicles is expected to be reduced from 40 percent to 30 percent. The government is also considering removing the existing restriction on the import of five-year-old used vehicles, he added.
“The objective of the move is to promote consumer welfare, expand market access, and encourage competition in the automobile sector”, the commerce secretary said.
Committee Chairman Naveed Qamar observed that increased imports could create greater competition in the market and help lower vehicle prices for consumers.
Import of used cars
The commerce secretary further informed the panel that 62 safety standards currently applicable to imported vehicles would also be enforced on locally manufactured vehicles.
He also highlighted the misuse of the personal baggage scheme in the past, stating that names and passports of individuals who had spent at least 180 days abroad were often used to facilitate vehicle imports.
