The prices of cars are likely to come down later this year as the federalgovernment is considering abolishing additional customs duty (ACD) on autosector in the upcoming Budget 2021-22, local media reported.
Officials said that the Ministry of Factories and Development and theFederal Board of Revenue (FBR) will finalize the plan for the abolition ofthe 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The ACD would be withdrawn as part of vendor incentives to promote thelocal production of vehicle spare parts. The local production would helpbring down the car prices.
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Earlier, the FBR had lifted ACD on the import of 2-3 wheeler electricvehicles completely built unit (CBU) condition, by up to Jun 2025. Electricauto rickshaw, electric motorcycle, and 3-wheeler electric-loader comeunder this category.
