Pakistan has issued a firm directive to car dealers, urging them to reduce the prices of imported vehicles after the removal of regulatory duty.
The expiration of additional regulatory duty on luxury goods on March 31 has prompted the government to emphasize the importance of passing on the cost benefits to consumers. Car dealers who fail to comply with the price reduction may face severe consequences.
Speaking to the media in Islamabad on Saturday, Minister Syed Naveed Qamar reminded car dealers that the additional regulatory duty on luxury goods, including imported vehicles, ceased on March 31.
The minister called upon car dealers to adjust their pricing accordingly and decrease the prices of imported vehicles. The removal of regulatory duty aimed to alleviate the financial burden on consumers and enhance affordability of imported vehicles. Failure to lower prices puts car dealers at risk of facing strict actions.
Minister Qamar also highlighted the ongoing efforts to finalize a staff-level agreement with the International Monetary Fund (IMF) prior to the upcoming budget. Once the agreement is established, restrictions on the opening of letters of credit (LCs) will be lifted.
This development is expected to facilitate the availability of raw materials for export-oriented industries, allowing smooth operations and contributing to the country’s economic growth.
It is worth noting that the time-bound notifications on the imposition of regulatory duties and additional customs duties (ACDs) on over 600 luxury and non-essential items expired on March 31. This expiration creates an opportunity for businesses, including car dealers, to adjust their pricing strategies and provide relief to consumers.
The warning issued by Federal Minister for Commerce, Syed Naveed Qamar, serves as a reminder to car dealers in Pakistan to reduce the prices of imported vehicles following the removal of regulatory duty. With the expiration of time-bound notifications on regulatory duties, dealers have the opportunity to pass on the benefits of reduced costs to consumers.
It is crucial for car dealers to heed this call, as failure to do so may result in strict actions being taken against them. As the government works towards finalizing a staff-level agreement with the IMF and lifting restrictions on LCs, it is expected that the business environment will become more conducive to growth, benefiting various industries, including the automotive sector.