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Apropos to the letter "urgent need for the free import of cars" by Mumtaz A. Piracha, I have differing opinions towards the free import of cars in to the country.
The city district governments have launched Urban Transport Schemes (UTS) and have invited transporters to invest in it. Many steps have been taken for increasing the number of CNG-operated buses under this scheme that offer mass transportation solutions to civilians.
In connection with this, Prime Minister Shaukat Aziz has also formally inaugurated the first phase of the much-awaited Karachi Circular Railway (KCR) on Tuesday March 8, 2005. This is another major step taken under the UTS.
Keeping these in mind, it is quite evident that owning a car is no more a necessity, but an item of luxury. That said, should not then the government earn revenue through duties and taxes on cars that are imported in the country?
I beg to differ with the writer when he says that the solution lies in the free import of cars. If any citizen of Pakistan wishes to enjoy the luxury of an imported vehicle, he should pay all the taxes and duties as his national responsibility.
Otherwise, considering commutation as a necessity, the government's mass transportation solutions are readily available for everyone to move within and across cities. The need for every Pakistani to own a car does not really exist. Those who want to own, must first perform their duty as a citizen and contribute to the national economy. If not, I don't think they deserve to own an imported vehicle.
During the last 3-4 years, Pakistan's GDP growth rate has touched 6%, but by permitting the free import of cars, the revenues earned by the government will be reduced; so how will the economy perk up? I fail to understand how one can advise the GoP to implement a policy that is negative to the economic growth of the country, while the local industry has already been plagued through the allowing of imports.
Free import would further reduce foreign exchange, slash government revenues and exhaust national reserves.

Copyright Business Recorder, 2005

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