Pakistan Automotive Manufacturers Association (PAMA) has requested the government to abolish custom duty, additional custom duty, and reduce the rate of input tax on tractors. While submitting Budget Proposals 2017-18 for the tractor industry, PAMA stated that due to these issues the entire industry is facing liquidity crunch affecting the trust of foreign investors/shareholders. Engineering Development Board (EDB) had earlier allowed import of those components for manufacturing of agricultural tractors which had not been developed in Pakistan at zero percent custom duty. “However, during the year 2015-16 additional custom duty of 1% on import of such components imposed by the government through mini budget. Further, 1% custom duty was imposed through budget for the year 2016-17 accumulating to a total of 2% custom duty,” stated PAMA.