To keep the increasing import bill under check, the government has recently approved the application of new tax rates on Completely Built-Up (CBU) automobiles.

The new Regulatory Duties (RDs) rates have been imposed on Electric Vehicles (EVs), Hybrid Electric Vehicles (HEVs), and Internal Combustion Engine (ICE) powered vehicles in CBU condition, according to the official document.

In comparison to CBU automobiles, the permitted rise in taxes for domestically built vehicles is rather minimal.

The Ministry of Industries and Production (MoIP) has also recommended raising the Federal Excise Duties (FEDs) on locally produced vehicle imports in order to slow down the exponential rise of automobile imports.

Regardless, reliable sources predict that the prices of vehicles with engines larger than a specific displacement will rise again.