Auto consumers of Pakistan might be able to get a sigh of relief as prices of local assembled cars are likely to come down in near future. According to information, government in the forthcoming financial budget is considering to abolish Advance Customs Duty (ACD) on the import of parts used to put together the locally assembled vehicles.
Currently, a 7% ACD is charged on the import of parts however the Ministry of Industries and Production (MoIP) and the Federal Board of Revenue (FBR) will reportedly discuss this matter in a meeting scheduled to be held on 31st March, after which the final decision will be made.
FBR has already abolished ACD on the import of electric vehicles, including electric motorcycles, electric auto rickshaws and 3-wheeler electric-loader up to 30th June 2025.
Although official announcement of the removal of ACD is yet to be made, however if deleted, one may expect the car priced to come down by at least 5% of the current prices. Which, for the sake of example would reduce Rs 150,000 on a PKR 3.0 million vehicle.