Pakistan Association of Automotive Parts and Accessories Manufacturers (PAAPAM) has expressed its grave concern over import of 24,500 used car in 8 months which have flooded the local market. Talking to Business Recorder here on Tuesday Syed Nabeel Hashmi, Chairman, PAAPAM said that Customs department cleared 4,250 cars only in the month of November 2011, whereas rates of the used imported cars are also high for their models.
Uncontrolled import of used cars, autoparts and CKD components, which can be manufactured locally, must be stopped, he added. Hashmi pointed out that Customs department is charging duty on these imported car at the old rate of $2,000 to $2,500 per piece whereas their prices have now gone up to $6,000 per piece. This is causing huge financial loss to the national exchequer, he lamented.
The PAPAAM chairman demanded of the FBR to revise the relevant SRO in line with the current prices of the used cars in the international market and collect customs duty accordingly. Commenting on the performance of the local large-scale engineering manufacturing sector, Hashmi said that the engineering industry required long and consistent policies to ensure stable growth.
Over the last five years Auto Industry has witnessed more than a dozen policy changes which have inadvertently created damaging consequential issues. He alleged that now the importers' lobby is pressing the government to allow import of 10-year-old used cars. With regard to 19 percent increase in import bill of November 2011 over the corresponding period of last year, Hashmi said the imported luxury cars are eating up precious foreign exchange.
Comments
Comments are closed.