Economic Coordination Committee raises duty on tyre, bike parts import
ISLAMABAD: The government on Thursday increased additional customs duty (ACD) on import of tyres and motorcycle parts produced locally and approved first-loss coverage for small and medium enterprises and small farmers. The decisions were taken at a meeting of the Economic Coordination Committee (ECC) of the cabinet, presided over by Finance Minister Muhammad Aurangzeb. The committee also…
On Thursday, the government raised the additional customs duty (ACD) on tires and motorcycle components, aiming to boost domestic manufacturing. These measures were approved by the Economic Coordination Committee (ECC) during a meeting chaired by Finance Minister Muhammad Aurangzeb. The ACD was increased from 11% to 31% for imported motorcycle parts from local manufacturers, and from 4% to 11% for radial tires.
The ECC also authorized first-loss coverage for small and medium enterprises and farmers, providing protection for loans up to 20% for SMEs and 10% for small farmers and medium-sized industries. Furthermore, the committee approved an investment of Export Development Fund resources into government securities and allocated Rs57.85 billion in supplementary grants.
These funds will be used to support initiatives such as the Small and Medium Enterprises Development Authority, the Utility Stores Corporation, the Public Private Partnership Authority, and the Ministry of Railways, which includes a Rs10bn grant for the Thar Coal Rail Connectivity Project.
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