Pakistan’s new auto policy: Expect cheaper cars, increased production ...palestine

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As the current Auto Development Policy (ADP 2016-21) is about to end in June this year, the government is preparing a new auto policy that will focus on facilitating the manufacturing of low-cost cars and incentivise auto exports. According to multiple industry sources, roughly 45% of a car price that a buyer pays goes to the government in the form of duties and taxes. The government charges duties on imported CKDs (completely knockdown units), the auto parts used in assembling cars. The Customs duty on import of localised parts is 45%. The duty on non-localised parts is 30%. There is an additional 7% duty on the import of parts. Federal Excise Duty on cars: 2.5% on cars up to

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