Pakistan has issued a stern warning to car dealers, urging them to reduce the prices of imported vehicles following the removal of regulatory duty.
The additional regulatory duty on luxury goods expired on March 31, and the minister has emphasized the need for car dealers to pass on the benefits of this change to consumers. Failure to comply with the reduction in prices may result in strict action being taken against the dealers.
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, came to an end on March 31.
The minister called upon car dealers to adjust their pricing accordingly and reduce the prices of imported vehicles. The removal of regulatory duty was intended to alleviate the burden on consumers and make imported vehicles more affordable. By failing to lower prices, car dealers risk facing severe consequences.
Minister Qamar also highlighted the ongoing efforts to finalize a staff-level agreement with the International Monetary Fund (IMF) before the upcoming budget. Once the agreement is in place, 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. The reopening of LCs will help these industries operate smoothly and contribute to the country’s economic growth.
It is important to note that the time-bound notifications on the imposition of regulatory duties and additional customs duties (ACDs) on the import of over 600 luxury and non-essential items expired on March 31. This expiration has created 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 action 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.
