The government has reduced the custom duty for the import of CKD (Completely Knocked Down) kits for the assembly of small cars with 1,000cc or below displacement engines. The move is expected to have a positive effect in form of reduced prices of such vehicles that are assembled locally.
According to the notification, the custom duty for the import of assembly kits of small cars with 1,000cc or smaller engines has been reduced from 30% to 15%. Furthermore, the government has also reduced the custom duty from 25% to 16% for the import of tire tubes.
Moreover, the notification also mentioned a reduction in the custom duty from 32.5% to 30% on the import of older car models with engine displacements of 1,000cc or smaller capacity. Meanwhile, the notification mentioned that the 15% relief is valid for a period of 3 years and applicable on new model cars certified by the Engineering Development Board (EDB).
Related: SBP Decides to Withdraw Restrictions on CKD Imports
Earlier, the State Bank of Pakistan (SBP) withdrew restrictions on imports effective from January 2, 2023. The relaxation provided by SBP in terms of imports and the reduction in custom duty for small cars will not only enable auto assemblers to overcome hurdles to their production process but will help bring the prices of 1,000cc & below cars within a more affordable price range.
A computer animation professional with over 23 years of industry experience having served in leading organizations, TV channels & production facilities in Pakistan. An avid car enthusiast and petrolhead with an affection to deliver quality content to help shape opinions. Formerly written for PakWheels as well as major publications including Dawn. Founder of CarSpiritPK.com
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