Import of new and old cars allowed: Cabinet reduces duties on small CKD, CBU vehicles

ISLAMABAD (February 12 2004): The Federal Cabinet on Wednesday decided in principle to allow import of cars, both new and old, but permission to import them would be given in the light of recommendations by a committee to be set up shortly.

“The Federal Cabinet approved, in principle, to reduce import duties on CKD and CBU cars of lower engine capacity to reduce the hardships being faced by the buyers of small cars. It also approved import of second-hand cars in due course,” a press release issued at the news conference addressed by Information Minister Sheikh Rashid Ahmad said.

The report of the task force set up last year to review local car production and suggest ways and means to cut down prices and expedite delivery came in for incisive discussion at the meeting.

The manufacturers have refused to reduce prices of cars, the minister said.

The make and models of the used cars and the terms and conditions for their import would be decided by the committee, the press release said.
<br> “The reduction in import duties on CKD and CBU small cars may come into effect before the next budget, depending on the recommendations of the designated committee,” it added.

The Cabinet also entrusted the committee to review the import of cars under the gift scheme and asked the automobile manufacturers in Pakistan to share their profits with the customers by reducing the unit prices of cars.

Prime Minister Mir Zafarullah Khan Jamali who chaired the meeting reiterated the policy of the government to honour all commitments with the investors and manufactures but emphasised that the hardships of the buyers could not be ignored, the press release said.

As to when the review committee would be set up and who would be its members, it is up to the prime minister, Sheikh Rashid told a questioner.

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