Reduction in duties on vehicles rejected
Lucky Motor Corporation Chairman Muhammad Ali Tabba has aired concerns over the government's proposed tariff rationalisation plan, particularly the reduction in duties on completely built-up (CBU) vehicles to 15% over a period of five years.
Tabba emphasised that while the intent behind tariff rationalisation may be to make cars more affordable for customers, the proposal currently under consideration, if implemented without a well-thought-out approach, could have an adverse impact on Pakistan's auto industry, undermine investor confidence and lead to a current account deficit.
He made the remarks while meeting Federal Minister for Finance Muhammad Aurangzeb and Special Assistant to the Prime Minister on Industries and Production Haroon Akhtar Khan.
He noted that under the Auto Development Policy (ADP) 2016-2021, Korean, European and Chinese automakers entered the Pakistani market with a cumulative investment of $1.2 billion to establish their manufacturing plants. This initiative achieved key objectives, including offering more choices to consumers, fostering competition and creating employment opportunities both in vehicle assembly and auto parts manufacturing sectors.
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