Budget 2024-25: Used cars likely to become more expensive next fiscal year

ISLAMABAD: The Government of Pakistan plans to increase regulatory duty on imported used vehicles in the upcoming budget as another effort to promote local vehicles.

It is learnt that for vehicles with engine capacity of more than 1800 cc, regulatory duty has been proposed to be increased by 30 percent, which can increase the duty by up to 100 percent.

Additionally, 15 percent duty is proposed on used vehicles with engine capacities up to 1800 cc. Meanwhile, both new and old hybrid vehicles up to 1800 cc will remain duty-free.

The proposed hike comes in response to a 255 percent increase in car imports last year due to lower regulatory duties.

Local automakers suffered a setback, importing $210 million worth of cars while spending Rs 170 billion on auto parts for local assembly, with foreign exchange spending of Rs 600 million to buy these parts from international markets. happened

In addition to creating employment opportunities, the local auto industry has invested around billions in FY 2022 alone and contributed around Rs 400 billion in taxes.

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3213 units were imported in February 2024 alone, while 396 units were imported in the same month in FY 2023, a staggering 713% increase.

Amid the surge in used car imports in the country, their share has already increased to 30 percent in the current fiscal year 23–24, up from 4 percent in the entire fiscal year 22–23.