Used Car Prices Poised to Increase in Next Fiscal Year
the federal government is considering a rise in regulatory duties on the import of used vehicles in the upcoming budget. The proposal entails a 30 percent increase in regulatory duties for vehicles with engine capacities exceeding 1800 cc, potentially elevating duty rates from the current 70 percent to a maximum of 100 percent.
Furthermore, there’s a suggestion to levy a 15 percent duty on used vehicles with engine capacities of up to 1800 cc. However, both new and old hybrid vehicles under 1800 cc would remain exempt from such duties.
This proposed adjustment comes in response to a significant 255 percent surge in car imports observed last year due to the low regulatory duties. In the first ten months of the 2023-24 fiscal year, Completed Built Units (CBUs) worth $210 million (Rs. 58 billion) were imported. Additionally, car parts valued at Rs. 170 billion were imported for local assembly, with an expenditure of Rs. 600 million in foreign exchange for sourcing these parts internationally.
