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
Bodywork
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.
Source: Pro Pakistani