Govt Plans To Give Relaxation On Custom Duty On Auto Sector

Senior Government officials revealed that the government is considering abolishing the 7% additional customs duty ACD on the auto sector in the next federal budget 2021-22.

The Ministry of Industries and Production and the Federal Board of Revenue FBR, jointly will finalize the proposal with the Ministry of Industry and Production Authority, have jointly informed about the withdrawal of ACD related to the import of spare parts used in the local collection of vehicles, senior officials said. In this regard, the Ministry of Industry and Production and the Federal Board of Revenue FBR will convene a meeting on March 31 at the Ministry of Industry and Production.

At present, the auto sector is required to pay 7% ACD on imports of spare parts. The ACD can be abolished in the country under the concessions of vendors for the manufacture of spare parts for vehicles.

The FBR has already abolished additional customs duties on imports of electric vehicles, while Wheeler is in a fully built unit CBU condition. By June 30, 2025, electric auto rickshaws, electric motorcycles, and three-wheeled electric cars.

As per the notification, additional customs duty will be levied till June 30, 2025. Electric vehicles coming under Pakistan Customs Tariff PCT codes 8703.8030 electric auto rickshaw, 8711.6040 electric auto rickshaw will have 2-3 wheelers c. BU, will not apply to imports motorcycles, and 8711.6060 3 wheeled electric.

The FBR had issued a notification to amend the SRO. 572 I 2020, February 3, 2021. According to the notification, no additional customs duty will be levied on imports of electric vehicles under the Pakistan Customs Tariff PCT categories.
Electric Auto Rickshaw 8703.8030
Electric Motorcycle 8711.6040
3 wheeled electric powered 8711.6060
In addition, ACD and Value Added Tax VAT exemptions on EV imports 2-3-23 wheelers with the introduction of new e-bikes and e-rickshaws will help Pakistan increase its existing 2-3 wheelers will allow change in the market.