Pama, Paapam protest against FBR decision: non-inclusion of proposals in budget

The Pakistan Auto Manufacturers Association (Pama) and Pakistan Association of Parts Accessories Manufacturers (Paapam) have reportedly protested over non-inclusion of their recommendations in the federal budget for second consecutive year. The issues faced by the local auto industry were discussed in detail at the 9th meeting of Auto Industry Development Committee (AIDC), held in the Engineering Development Board (EDB).
Official documents of EDB, available with Business Recorder, show that the Board carried out competitiveness and efficiency improvement exercise for budget 2011-12 for all engineering sectors, including automobile sector. A detailed consultative process was carried out involving PAMA, PAAPAM and other stakeholders prior to submission of tariff proposals to FBR for implementation. The subcommittee representing PAMA and PAAPAM forwarded the tariff recommendations to EDB. After detailed deliberations in a daylong session, EDB short-listed the proposals for submission to FBR, but the proposals were not entertained by the FBR.
The stakeholders, including PAMA and PAAPAM, have shown serious concern that the recommendations, jointly compiled by the industry and EDB, had not been considered by FBR for the second consecutive year, the documents added. An official told this scribe that the committee has agreed to take up this issue with the FBR to address tariff related issues.
The AIDC did not concur with some of the proposals of PAAPAM, with the argument that the Chairman of the Association already enjoys tariff benefits. The documents further show that the meeting also discussed replacement of Tariff Based System (TBS) as the committee had decided in its 8th meeting to have detailed deliberations on alternative system to replace Tariff Based System (TBS) to be carried out in the upcoming meeting of AIDC.
With respect to the generic parts relating to conversion of vehicles to Euro-II standards recommended by PAMA and PAAPAM for import at zero percent rate of duty, the industry was asked to prepare justification for inclusion of such parts in generic list for review and approval by technical committee of EDB. PAMA and PAAPAM had been asked to update the committee on their mutual discussions. Both auto sector Associations, sources said, did not bring feasible proposals in this regard.
The meeting was also updated on status of minimum in-house facilities to be forwarded to FBR. According to documents, it was decided in the 8th AIDC meeting that the list of minimum in-house facilities, finalised with the inputs from the industry, would be forwarded to budget co-ordination cell of FBR to incorporate in the relevant SRO. Millat Tractors had raised a query regarding the design/drawing aspect. The committee had decided in the 8th AIDC meeting that the design/drawing aspect as highlighted by Millat Tractors would be given due consideration by EDB during the review of relevant SRO.
A proposal regarding replacement of marking fee, being charged by PSQCA on the number of units produced by the motorcycle industry with fixed fee on existing and new models, was approved by AIDC's subcommittee on Safety, Quality and Environmental Standards (SQES) in its 4th meeting held on June 13, 2011. The issue will be forwarded to the FBR.