https://www.dawn.com/news/1550965/imf-backs-govt-package-for-construction-sector
The IMF “...advised appropriate taxation for petroleum products, vehicles, beverages and tobacco sector..”
“She said Pakistan needed to move the way with taxation in line with good taxation principles which sometimes required increasing the tax base and sometimes tax rates.”
Once again IMF advising rationalising taxes which means focusing on increasing ‘tax base’ rather than ‘tax rate’.
In the case of imported vehicles, government can increase its tax base (and total revenue) significantly by lowering duties and taxes not to mention benefitting consumers and effectively ‘regulating’ the local producers by giving them competition.
Once again to reiterate we have INSANE duties and tax rates on imported cars not seen anywhere else in the world.