50 percent fall in used cars import likely

The restriction imposed by the government on import of motor cars of over five-year-old, may cause about 50 percent decline in car imports during the current financial year.
Central Board of Revenue (CBR) Chairman M. Abdullah Yusuf stated this while talking to newsmen on the occasion of concluding ceremony of 31st Specialised Training Programme here at Directorate General of Income Tax Training on Thursday.
Yusuf maintained that about 50,000 used cars were imported during the last fiscal, which may decline to 25,000 this year due to restriction imposed by the government. He, however, opined that premium on new car which had already substantially reduced would not go up now due to enhancement in car production.
The local car manufacturers have expanded their production capacities, which would help reduce demand and supply gap, he added. The restriction on import of over 5-year old cars was taken keeping in view the difficulties being faced by motoring public in maintenance of these vehicles, he said. He said that audit of sugar mills is being conducted through a proper system and there is no 'specialised exemption' in this audit.
Audit of some sugar mills has already been completed while remaining mills is underway, he added. 'We are not supposed to carry out audit of only sugar sector rather CBR is required to conduct audit of other sectors. As far as sugar price hike is concerned, it is direct outcome of increase in its prices in the international market and shortage of commodity in the country,' he added.
About the cable operators' demand for abolition of Rs 25 tax on their subscribers, he said this was the government decision, which can consider their demand.
To a question about flying invoices, the CBR chairman said that we have already introduced 'zero rate' for five major sectors which helped eradication of 80-percent problems while steps were underway to improve the system to avert any kind of exploitation. About the income tax refund on account of advance income tax, he said CBR had reviewed the system to see the huge volume of refund and now the tax would be collected equal to the liabilities so that question of refund may not arise. The number of taxpayers has increased by 20 percent which now reached to 1.5 million, he added.