In a letter to Prime Minister Shehbaz Sharif, the Pakistan Automotive Manufacturers Association (PAMA) requested a 15 percent regulatory tariff on the import of secondhand cars smaller than 1300cc. PAMA stated in a letter to the premier that while the Finance Act established a 15 percent regulatory charge on used car imports, it only applied to vehicles over 1300cc in capacity. Regrettably, the segment of vehicles with engines smaller than 1300cc was left out.
The association emphasized that, according to customs import data for the period of January through May 2024, almost 62% of all used automobile imports fall into the category of vehicles under 1300 cc.
PAMA has suggested a 15 percent regulatory duty on the import of used vehicles under the 1300 cc category in order to protect the industry from the “unfair competition” of used vehicle imports and to support the expansion of the local industry in order to meet the targets under Auto Policy 2021-26.
Additionally, the association stated that since the SRO 577 (I) 2005 was last modified in 2015, taxes have been assessed on taxable values that were in effect at the time, resulting in significant losses for the exchequer. The letter stated that it is now necessary to amend this SRO to reflect current rates.
