Auto import duties face criticism

The Express Tribune reported that a member of the Tariff Policy Board has objected to the government's decision to impose additional customs duty of up to 31% on some imports. Dr Rubina Athar described the levy on vehicle tyres and some motorcycle parts as a mistake, arguing it cuts against the National Tariff Policy's push to open the economy. She made the remarks at a panel discussion on tariff reforms organised under the REMIT Initiative, funded by the United Kingdom.

The finance ministry said the ECC approved 11% additional duty on tyre imports to protect local industry. Motorcycle parts face 11%, rising to 31% when manufacturers import them rather than making them locally, while parts from China stay at zero duty under the free trade agreement. The commerce ministry, however, stated that auto sector SROs fall outside the tariff policy, citing a Tariff Policy Board decision of 6th June, 2026, and noted that the auto policy lapsed in June without a successor.

Economist Dr Vaqar Ahmed warned that favouritism in applying tariff rules would undermine the policy's purpose. Zafar Mehmood, CEO of Nimir Chemicals, argued that cutting customs duties alone would not lower consumer costs, since other levies cause larger problems. FBR customs member Shakil Shah said advance income tax withheld at the import stage ties up industry funds regardless of whether profits are made.