Why Duty Tax on Imported Cars?
In a strong move to support the local car industry, the Overseas Investors Chamber of Commerce and Industry (OICCI) has suggested that the federal government keep a high duty tax on imported cars. According to media reports, OICCI’s recent budget proposals emphasize the need for continued regulatory and extra customs duties on these imports.
Protecting the Local Auto Industry
The reason behind OICCI’s suggestion is straightforward: they want to protect local car manufacturers from the negative impact of a growing number of used car imports. The chamber argues that the increasing influx of used cars is hurting the sales of locally made vehicles. By maintaining these duty taxes on imported cars, OICCI aims to reduce the number of used cars coming into the country and boost the growth of the local car industry.
Preventing Misuse of Import Schemes
Additionally, OICCI has recommended an extra tax on cars imported under schemes meant for overseas Pakistanis. The chamber claims that many people are misusing these schemes, which were originally intended to benefit citizens living abroad, for commercial gains. By imposing stricter rules and additional taxes, OICCI believes that such misuse can be prevented.
Balancing Import Policies and Local Industry
This proposal fits into a larger goal of adopting policies that protect the long-term interests of the national economy. OICCI believes that controlling the import of used cars through duty tax on imported cars is a crucial step towards achieving sustainable economic growth.
Interestingly, this proposal comes shortly after the federal government’s recent change to the Import Policy 2022. On March 28, the government relaxed restrictions on importing used cars, allowing vehicles with up to 2,000 kilometers of mileage to be considered new. This was a big change from the previous limit of 500 kilometers.
OICCI’s recommendations highlight a key conflict between making import rules easier and protecting local industries. As the government tries to balance these competing interests, the future of Pakistan’s car industry remains uncertain. Will policymakers listen to OICCI’s advice and prioritize local manufacturing, or will they continue to ease import restrictions? Only time will tell.