Auto Industry Seeks 40% Duty on Used Car Imports

PAMA Seeks clarity on Motor Vehicle Industry Development Act 2025 relating to testing, conformance and coordinated implementation of Regulations  

By Salman Khan

Islamabad: The local auto industry has called for an increase in customs duty on the import of used cars by up to 40 percent in a bid to protect local car assemblers.

Sources told Newstoday92. Com that Pakistan Automotive Manufacturers Association (PAMA) in a recent meeting with SAPM, has proposed a 40% enhancement of customs duty on used vehicles.Smoke-Emitting Cars to Face Ban in Islamabad

It also suggested a reduction in depreciation allowance from 1% to 0.5% and recommended the introduction of a testing regime and a proper dealership network.

Local industry believed that import of used cars had hit the local industry sales in the country. PAMA has also urged a review of the valuation mechanism to discourage the import of used vehicles, considering the investments already made by renowned companies.

Motor Vehicle Industry Development Act 2025

PAMA has also sought further clarity on the Act. The Act covers a detailed mechanism for testing, conformance, and coordinated implementation of regulations.

It outlines the responsibilities of both the Government and OEMs to ensure the provision of better vehicles and environmental standards for customers.

The Act has already been approved by the Cabinet. A detailed discussion can be carried out in subsequent meetings.

FUTURE OF AUTO INDUSTRY

PAMA has also sought clarity on the future auto policy in the areas which included Review and revision of tariff structures in line with the National Tariff Policy (NTP).

It also sought provision of adequate protection to local manufacturing compared to imports and called for adoption of implementation plan for WP-29 Regulations. PAMA also sought promotion of local manufacturing of auto parts. It said that export promotion strategy be discussed in future meetings.

Special Assistant to the Prime Minister (SAPM) on Industries and Production, Mr. Haroon Akhtar Khan, chaired a high-level meeting with the Pakistan Automotive Manufacturers Association (PAMA) in Islamabad on Friday.

Key representatives from PAMA, Secretary of the Ministry of Industries and Production Mr. Saif Anjum, and CEO of the Engineering Development Board (EDB) attended a meeting.

The agenda of the meeting focused on reviewing and enhancing the quality standards for both imported and locally manufactured vehicles in Pakistan.

According to official statement, addressing the participants, SAPM Haroon Akhtar Khan emphasized the government’s unwavering commitment to public safety, stating, “The lives of our citizens are precious, and ensuring their safety is the government’s top priority.”

He further underscored that international safety and quality standards will be applied uniformly to all imported and locally manufactured vehicles.

“These standards are not only essential for the protection of human lives but also play a vital role in environmental preservation,” he added.

To implement the new standards effectively, it was agreed that the Engineering Development Board and the automotive manufacturers will work in close coordination and consultation.