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In a bold move to bolster the local automobile sector, the Overseas Investors Chamber of Commerce and Industry (OICCI) has advised the federal government to maintain strict duties on imported cars. According to the media reports, OICCI’s recent budget proposals underscore the need to continue imposing regulatory and additional customs duties on these imports.
The rationale behind OICCI’s proposal is clear: protecting the local automobile industry from the adverse effects of a burgeoning influx of used cars. The chamber argues that the increasing number of used cars entering the market is undermining the sales of domestically manufactured vehicles. By keeping these duties in place, OICCI aims to curb the import of used cars and promote the growth of the local auto sector.
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Moreover, the OICCI has suggested an additional tax on cars imported under schemes designed for overseas Pakistanis. The chamber claims that many are exploiting these schemes, which were originally intended to benefit overseas citizens, for commercial purposes. By imposing stricter regulations and additional taxes, the OICCI believes that such misuse can be effectively discouraged.
This proposal aligns with the broader objective of adopting policies that safeguard the long-term interests of the national economy. The OICCI’s stance is that regulating the import of used cars is a necessary step towards achieving sustainable economic growth.
Interestingly, this proposal comes on the heels of the federal government’s recent amendment to the Import Policy 2022. On March 28, the government eased restrictions on importing used cars, allowing vehicles with a mileage of up to 2,000 kilometers to be considered new. This marked a significant increase from the previous limit of 500 kilometers.
The OICCI’s recommendations highlight a critical tension between easing import restrictions and protecting domestic industries. As the government balances these competing interests, the future of Pakistan’s automobile sector hangs in the balance. Will the policymakers heed OICCI’s advice and prioritize local industry, or will they continue on the path of relaxed import regulations? Only time will tell.
