ECC approves whopping hike of regulatory duty on imported cars

ISLAMABAD: The federal government has approved a whopping hike of regulatory duty up to 35 per cent on imported cars to discourage imports of electric and hybrid vehicles.

The Economic Coordination Committee (ECC) of the federal cabinet approved a 35 per cent hike in regulatory duty on imported cars above 850cc, making it difficult to purchase luxurious vehicles.

It was learnt that the regulatory duty on 851cc imported vehicles was increased up to 50 per cent from 15 per cent, whereas, the committee also gave approval to jack up duties on 1500cc hybrid vehicles.

A humongous hike of regulatory duty was also approved for 1800cc imported hybrid cars from 15 per cent to 50 per cent. The authorities said that the decision was taken to discourage imports of cars, whereas, the move will also reduce the pressure on the dollar after a massive cut in imports.

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During the ECC session, the Ministry of Commerce submitted a summary for the rationalisation of tariff on import of vehicles and other items requested by the Ministry of Industries and Production and other sectors.

The meeting discussed the summary in detail and approved recommendations of the Tariff Policy Board with some modifications. The forum also decided to review some recommendations relating to the automotive sector after six months.

The Ministry of Industries and Production tabled a summary for the import of urea from China by the Trading Corporation of Pakistan (TCP).

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The committee allowed the import of 50,000 MT of urea on GoG basis with China on an immediate basis subject to clearance from the PSQCA, according to a media statement. The TCP was also tasked to negotiate the price with the authorised Chinese supplier for further import of urea.

The ECC also approved requests for technical supplementary grants presented by the Petroleum Division and Finance Division. The request of the Power Division for TSG was also approved subject to the reconciliation with Finance Division.