ISLAMABAD: Federal government has started considering the proposals for Budget 2014-15 regarding reduction of customs duty on used imported vehicles. However, the auto manufacturers have reacted to this strongly.
Sources said that the government is considering the reduction in customs duty on used imported vehicles from 10-50 per cent. They added that under the possibly revised auto policy, the reduction in customs duty may be granted on vehicles that are 800-1800 cc. In addition to this a new tariff regime may be introduced on vehicles below 800 cc. However, the ban on vehicles more than three years old is most likely to be maintained.
Meanwhile, auto manufacturers have shown grave concerns over the matter and rejected any possible reduction in customs duty on imported vehicles. But the government seems to break down the monopoly of the auto manufacturing sector.
