I’m preparing to move to Pakistan and so I was looking at car prices to see if it was best to take my car over or buy on from there.
The prices in Pakistan are ridiculous and the import duties are sky high as well. Why is that the case? I could understand if there was a domestic car maker or if there were foreign companies assembling cars in Pakistan (I think Suzuki Mehran is the only one being assembled).
Is this just a money making ploy by the government?
Re: Exporting/ Importing a car to Pakistan????????
Import duties on cars are a major reason for imported cars being expensive. Even if you import your personal car, you'd have to pay duty depending on the age and valuation of the car. For cars assembled in Pakistan, there are import duties on parts imported. For a country like Pakistan, the taxes are still not THAT high. There should have been higher import duties throughout the history of the country so as to promote local car assembly and parts manufacturing industry (which India did). Indigenous cars would have been cheaper.
Another major reason is firms like Toyota and Honda earning profits out of export of parts to Pakistan rather than sale of cars. Toyota or Honda in Japan for example would inflate the transfer prices while selling to Toyota or Honda Pakistan and earn their share of profit from the transfer rather than earning through sales of assembled cars in Pakistan and having to repatriate profits back to mother firms.