Pakistan raised additional customs duty on imported tyres and motorcycle components on Thursday. The tariff on certain bike parts climbs to 31 per cent to shelter domestic manufacturers.

Cabinet members on the Economic Coordination Committee lifted the additional customs duty on locally manufactured radial tyres and motorcycle components from 4 per cent to 11 per cent. Rates on motorbike parts imported by local assemblers surged from 11 per cent to 31 per cent.

Finance Minister Muhammad Aurangzeb presided over the Islamabad meeting. The committee altered statutory regulatory order SRO 693(I)/2006 on the recommendation of the Revenue Division. These tariff hikes follow the first quarter of the fiscal year and coincide with a staff-level agreement with the International Monetary Fund.

Imported parts that compete with local suppliers face direct penalties under the new structure. Components brought in by vehicle assemblers take the steepest hit, jumping 20 percentage points to 31 per cent. Finished radial tyres and replacement parts now carry an 11 per cent levy.

Revenue Division documents confirm the amendment to SRO 693(I)/2006 targets imports where domestic manufacturing capacity already exists. Officials structured the differential to push assemblers toward local supply contracts over foreign procurement.

Vehicle assemblers across the country have long relied on imported knock-down kits from China, Japan and Southeast Asia. The wider tariff gap raises landed costs on foreign parts. Assemblers must now absorb the higher expenses or negotiate domestic purchasing contracts.

Component vendors gain a protected customer base in a volatile retail market. Two-wheelers dominate urban transport in Karachi, Lahore and Rawalpindi.

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