The newly-elected vice chairman of All Pakistan Motorcycle Spare Parts Importers and Dealers Association (MSPIDA), South Zone, Nasir Maqbool has urged the government to reduce import duty on motorcycle spare parts from existing 35 percent to 20 percent to curb its smuggling.
Speaking at a meeting of the association, he pointed out that at present the importers of motorcycle spare parts were paying 80 to 85 percent taxes including 35 percent import duty, 17 percent additional duty and 16 percent sales tax. He said that high rate of taxes was an incentive for smugglers to boost their illicit trade and causing the government loss of revenue.
He claimed that import of spare parts through legal channel had declined whereas smuggling of the parts was on the rise. Nasir Maqbool said that the increase in smuggling was destroying the local motorcycles spare parts industry. He opined that the reduction in import duty would not only result in increase of government revenue but would also help curb the smuggling and encourage import of the parts through legal channels. He assured the members of the association that he would make all out efforts to convince Finance Ministry's and Federal Board of Revenue's (FBR) authorities that lowering taxes and duties was the only solution to curb smuggling of motorcycle spare parts.
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