The Tariff Policy Board (TPB) approved the commercial import of five-year-old used vehicles with an additional duty of 40 percent, says in media reports. All Pakistan Motor Dealers Association chairman HM Shehzad wrote a letter to Prime Minister Shehbaz Sharif and Federal Minister for Commerce Jam Kamal Khan in connection.

In his letter, the APMDA Chairman said that a draft of the Motor Vehicle Development Act 2025 has already been finalised, and the Tariff Policy Board approved it. He said that now this matter will be forwarded to the Economic Coordination Council (ECC) for approval.

MM Shehzad said that the International Monetary Fund’s Extended Fund Facility (EFF) requires a gradual reduction of tariffs on used vehicles.HH Shehzad said that the government’s draft will create hurdles for the import of used cars.He said that an import requirement is to be the owner of a showroom and a workshop, and a licence from the Engineering Development Board is also mandatory.

All imports must be registered with the income and sales taxpayers.Other industry representatives have warned that tariff reductions and commercial imports without age limits could undermine decades of investment and technology transfer.

Credit: Independent News Pakistan (INP)