13 Auto Parts to Get Costlier After the New 11% Customs Duty
The cost of replacing a windscreen or a heavy truck tyre could soon become more expensive. The Government has allowed 11 percent customs duty on another 13 imported parts and components of vehicles, which are now being produced domestically. Here are the updates and its implications for you.
Who Approved the Duty and Why?
The proposal of the ECC was approved by the Revenue Division and Federal Board of Revenue. It updates SRO 693(I)/2006. The aim is long-term, according to the government. It is looking toward local industry to consume foreign exchange, generate employment and provide export options.
What Causes These Auto Parts?
They report the type of tyres and other radial tyres used for heavy commercial vehicles, licence plates, side reflectors and brackets, foot rest, wheel assemblies, windscreens, seat bases, tail boxes and several covers and plates. The names of items as mentioned in these media reports, please refer to the official notification of the FBR.
Is this the first duty in an Auto Parts company?
More than 1200 codes versus auto components already exist under SRO; the rates vary depending on the local manufacturing of each component. More additions are recommended by the Engineering Development Board, and by the Ministry of industries as local production expands. So that in the future more parts could be added to the list.
Will Car Parts Cost More?
The imported version will be more expensive. The purpose of the duty is to reduce the competitiveness of imported parts compared to local parts. It may also increase the price to consumers who rely on the imports of assemblers. They don’t all raise rates on the same day, the retail price has yet to be announced.
This is what Car Owners should do now?
Do not panic buy. Instead:
1. Ask your workshop whether a part is local or imported.
2. Check both options for price, quality and warranty.
3. See alternatives and make a good decision.
Conclusion
The 11 percent duty will apply to anyone requiring imported parts, while reducing manufacturer costs of local parts makers. However, it remains to be seen what the effect will be on workshop prices. Always ask questions, compare alternatives and factor in costs of repairs while considering any car purchase.
