Government Increases Customs Duty on Tyres and Motorcycle Parts Imports

ISLAMABAD: The Pakistani government has raised the additional customs duty (ACD) on the import of locally produced tyres and motorcycle parts, a decision made during a meeting of the Economic Coordination Committee (ECC) on Thursday. The ACD on radial tyres has been increased from 4% to 11%, while the duty on motorbike parts imported by local manufacturers has surged from 11% to 31%.

The ECC, chaired by Finance Minister Muhammad Aurangzeb, also approved the allocation of resources from the Export Development Fund (EDF) into government securities. Additionally, the committee sanctioned Rs57.85 billion in supplementary grants, coinciding with a staff-level agreement reached with the International Monetary Fund (IMF) and the conclusion of the first quarter of the fiscal year.

This move is aimed at bolstering local manufacturers by making imported alternatives more expensive, thereby encouraging domestic production. The increase in duties reflects the government’s commitment to support local industries amidst ongoing economic challenges.

Looking ahead, the government is expected to monitor the impact of these changes on local manufacturing and consumer prices. Further discussions regarding economic policies and support for small and medium enterprises are anticipated in upcoming ECC meetings.