Islamabad: The National Assembly Standing Committee on Commerce on Monday expressed serious concern over the current vehicle import duty structure, terming it unjust and counterproductive, particularly for middle-income consumers seeking small, affordable cars.
Committee member Shaista Pervaiz Malik criticized what she described as “ridiculous discrepancies” in the existing tariffs. She pointed out that under the current regime, smaller cars — typically below 850cc — are subject to a 55% import duty, while certain larger vehicles carry a duty of 65% to 75%. Despite regulatory duties of up to 200% previously imposed on luxury vehicles, the committee noted that recent reductions have made high-end models relatively more accessible than budget options.
“There seems to be a policy distortion where importing large vehicles has become cheaper, while the working-class buyer is struggling to afford even the smallest car,” she remarked during the committee session.
The meeting, chaired by MNA Javed Hanif, called on the government to reconsider the auto import tariff structure in the upcoming automobile policy. Hanif emphasized the importance of making small vehicles affordable for middle-class families, arguing that an inclusive transport policy must ensure accessibility across income brackets.
Commerce Ministry officials present at the meeting acknowledged the imbalance and assured the committee that relevant stakeholders are being consulted to formulate a more equitable policy framework.
Separately, the committee was briefed on the status of Pakistan’s ban on gold jewellery exports, imposed through an FBR-issued Statutory Regulatory Order (SRO) in May. Ministry officials informed the panel that the ban remains in effect until June 30, but a summary has been sent to the Prime Minister recommending the lifting of the restriction to boost export activity in the sector.
The committee urged timely decision-making on the issue, citing the need to support Pakistan’s struggling export base.
The session concluded with the committee requesting a comprehensive review of current tariff policies impacting vehicles and jewellery, with an emphasis on affordability, equity, and competitiveness.
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