Government Approves 11% Additional Duty on 13 Auto Parts

The federal government has approved an additional customs duty of 11% on 13 automobile parts and components in a move aimed at curbing imports and safeguarding domestic manufacturers.

According to The Express Tribune, the Economic Coordination Committee (ECC) of the cabinet approved the measure following a proposal from the Revenue Division and the Federal Board of Revenue (FBR).

The products covered by the decision include tyres for heavy commercial vehicles, licence plates, side reflectors, brackets, footrests, wheel assemblies, windscreens, seat bases, tail boxes, centre covers and other related components.

The Revenue Division stated that the additional duty would apply to automobile parts already being manufactured locally, as identified by the Engineering Development Board (EDB) and the Ministry of Industries and Production.

The decision requires amendments to SRO 693(I)/2006, issued on July 1, 2006, under Section 18(5) of the Customs Act, 1969.

At present, the relevant notification covers more than 1,200 Pakistan Customs Tariff (PCT) codes for automobile parts and components, with additional customs duties applied at different rates.

On September 7, 2026, the Ministry of Industries recommended adding more domestically manufactured components to the list, prompting the Revenue Division to approach the ECC for approval.

The government expects the higher duty to encourage local manufacturing, lower foreign exchange spending on imported goods, create employment opportunities and help develop potential export markets.

Before approval was granted, the proposal was circulated among the ministries of Finance and Commerce for consideration.