Govt imposes 11% additional customs duty on 13 auto parts to protect local industry

The federal government has cleared an 11% additional customs duty on 13 automobile parts and components, a step aimed at curbing imports and shielding domestic manufacturers. Profit, citing The Express Tribune, reported that the Economic Coordination Committee of the cabinet took the decision on a proposal from the Revenue Division and the Federal Board of Revenue. The list spans heavy-vehicle tyres, number plates, wheel assemblies and windscreens, among other items.

According to the Revenue Division, the levy applies only to parts already produced locally, as pinpointed by the Engineering Development Board and the Ministry of Industries and Production. The change amends SRO 693(I)/2006, which dates from July 1, 2006, and was made under Section 18(5) of the Customs Act, 1969. More than 1,200 Pakistan Customs Tariff codes for auto parts fall under that notification, carrying additional duties at differing rates.

The Ministry of Industries had proposed widening the list of locally made components on September 7, 2026, which led the Revenue Division to request approval from the ECC. Officials expect the measure to lift domestic output, cut foreign exchange outgo on imports, create jobs and open export opportunities. The proposal was shared with the Finance and Commerce ministries before the ECC signed off.