The prices of cars are likely to come down later this year as the federal government is considering abolishing additional customs duty (ACD) on auto sector in the upcoming Budget 2021-22, local media reported.
Officials said that the Ministry of Factories and Development and the Federal Board of Revenue (FBR) will finalize the plan for the abolition of the 7% ACD on the import of spare parts used in local vehicle assembly.
The ACD would be withdrawn as part of vendor incentives to promote the local production of vehicle spare parts. The local production would help bring down the car prices.
Earlier, the FBR had lifted ACD on the import of 2-3 wheeler electric vehicles completely built unit (CBU) condition, by up to Jun 2025. Electric auto rickshaw, electric motorcycle, and 3-wheeler electric-loader come under this category.