Pakistan Association of Automotive Parts & Accessories Manufacturers (PAAP&AM), expressing its grave concern over Federal Budget 2009-10, said, 'the measures proposed in the budget would lead to colossal roll back in automotive industry, as it has allowed to import of tractors, bulldozers and combined harvesters by substituting serial number 69 of Sixth Schedule of Sale Tax Act 1990.
The Managing Committee of PAAP&AM held a meeting here on Friday to analyse and review the impact of the new budget on automotive industry and bitterly resented the new proposals in the budget and requested the federal government for the reversal of these SROs.
The committee maintained that reduction in custom duty by 5 per cent on Axle Tube without Hub and Drum in Tariff Based Notification for automotive assemblers/ manufacturers and complete Axle of Trailers is totally detrimental to local vending industry because complete Axle assembly also contains Hub and Drum and tantamount to large-scale roll back in automotive industry.
Furthermore, it elaborated that the automotive vending industry is all time neglected sector despite the fact that it has been playing a key role in localisation of vehicle parts and deletion level ranges from 70 per cent to 98 per cent in small cars, tractors and motorcycles components respectively.
The committee stressed that instead of patronising through export incentives and industry friendly policies the government has adopted such policies that were pulling it down to earth. Moreover, the committee also demanded withdrawal of 2 per cent increase in WHT at import stage and treating it as final tax for commercial sector, 5 per cent IDP tax on Individuals and AOPs, and restoration of WHT exemption facility at import stage for LTUs.
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