Imported car prices likely to fall in budget
Imported car prices to fall as govt likely to propose tax reduction on old vehicles
The federal government is considering reducing tariffs on old vehicles by 10% annually and easing taxes on the import of five-year-old cars under the upcoming Federal Budget 2025–26, reported 24NewsHD TV channel.
As per sources, the government is reviewing the proposal under its National Tariff Policy to make used cars more affordable.
In a bid to meet IMF conditions, a formal proposal has been presented to reduce import duties on older vehicles.
The next federal budget is likely to include permission for importing vehicles up to five years old.
Sources added that additional customs duties on vehicles may be phased out, and there are also recommendations to lower regulatory duties on car imports.
Furthermore, the budget is expected to avoid imposing any new regulatory duties on the auto sector.
A structured reform of the Fifth Schedule of the Customs Act is also on the table, aiming to streamline outdated tariffs.
The proposed strategy includes eliminating non-tariff barriers in the auto industry and reducing the average auto sector tariff to below 6% by 2030.
These measures could significantly reduce the cost of imported vehicles and revitalise competition in the local auto market.
Reporter: Waqas Azeem