EV tax clarity masks alarm over tariff policy

The decision has received a cautious welcome from the auto parts industry, which supports the relief but is urging a broader industrial policy to protect local manufacturing and support the shift to electric vehicles.Aamir Allawala, former chairman of the Pakistan Association of Automotive Parts and Accessories Manufacturers (PAAPAM), said the move provides clarity for the hybrid segment.However, he warned of long-term risks to the auto parts industry from the National….

Allawala said PAAPAM has proposed a minimum 35% customs duty or Federal Excise Duty on localised parts.He warned that without tariff protection, the auto parts sector could roll back or shut within three years, shifting Pakistan towards assembly or imports instead of manufacturing.He estimated this could cost around 250,000 jobs and require about $2 billion annually in vehicle imports.He also called for equal 35% tariff protection for conventional and electric….

He said new entrants should start at 10% localisation, rising to 40% within five years.PAAPAM warned this would avoid a repeat of post-2016 trends, when entrants imported 80–100% CKD kits while benefiting from a 25% duty regime.

EV tax clarity masks alarm over tariff policy Updated 6 minutes ago Experts slam tariff cap; warn it undermines localisation, strengthens import reliance.