Up to 31% Duty on Imported Bike Parts Sparks Tariff Policy Row

The Pakistani National Tariff Policy Board has voiced objection to the government's recent decision to impose additional customs duties ranging from 11 to 31 percent on imported vehicle tyres and motorcycle parts. Dr. Rubina Athar, a member of the board who played a key role in formulating the National Tariff Policy, argued that the proposal should have been presented to the board for consideration before being forwarded to the Economic Coordination Committee (ECC).

The Finance Ministry confirmed that the ECC had indeed approved the additional duty, which would apply to certain motorcycle components such as license plates, brackets, reflectors, and more. However, parts imported from China would remain duty-free under the existing Free Trade Agreement. The controversy centers around whether this move aligns with the government's stated goal of reducing trade barriers.

Athar expressed concerns that such import substitution policies could make industries inefficient without benefiting consumers. She also pointed out that import duties, along with other taxes, can strain businesses' cash flow. While some praised the move to boost domestic production, others warned that the policy could harm the conventional automotive industry and favor alternative energy vehicles.