OICCI Recommends High Duties on Imported Cars

Jawad

17 May 2024

262

OICCI Recommends High Duties on Imported Cars

In a bid to strengthen the local automobile sector, the Overseas Investors Chamber of Commerce and Industry (OICCI) has urged the federal government to maintain strict duties on imported cars. Recent budget proposals from the OICCI highlight the need for ongoing regulatory and additional customs duties on these imports.

Protecting Local Industry

The OICCI argues that the increasing influx of used cars is negatively impacting the sales of domestically manufactured vehicles. By maintaining these duties, the chamber aims to limit the import of used cars and support the growth of the local auto industry. This measure is seen as essential to protect local manufacturers from the adverse effects of the burgeoning import market.

Additional Tax Proposals

Furthermore, the OICCI has proposed an extra tax on cars imported through schemes intended for overseas Pakistanis. The chamber contends that these schemes are being exploited for commercial gain rather than their intended purpose of benefiting overseas citizens. By enforcing stricter regulations and additional taxes, the OICCI believes that such misuse can be curtailed.

Balancing Import Policies and Domestic Protection

This proposal comes shortly after the federal government's amendment to the Import Policy 2022, which eased restrictions on importing used cars. The new policy allows vehicles with up to 2,000 kilometers of mileage to be considered new, a significant increase from the previous limit of 500 kilometers. The OICCI’s recommendations underscore a critical tension between easing import restrictions and protecting domestic industries. As the government navigates these competing interests, the future direction of Pakistan’s automobile sector remains uncertain. Will policymakers prioritize local industry based on OICCI’s advice, or will they continue to relax import regulations? The outcome will be pivotal for the industry’s future.

Used Cars Imported Cars Import duties Local Auto Industry OICCI Proposal Used car Imports Additional customs duties Domestic car sales Tax on imports

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