Call to rationalise duty on motorcycle spare parts

All Pakistan Motorcycle Spare Parts Imports and Dealers Association (APMSPIDA) has urged the federal finance minister to bring the motorcycle spare parts in maximum customs duty slab in the larger interest of the country. The association noted that that in the budget speech 2015-6 the Finance Minister stated that maximum slab of customs duty is 20 percent but motorcycle spare parts customs duty has not been changed which is still 35 percent, which is a discriminatory and against the justice, because other items slab of customs duty has been reduced to 20 percent as per budgetary documents.
It is surprising that Finance Minister announced in his budget speech that maximum slab of customs duty will be 20 percent on the other hand the most cheapest means of transport/conveyance facility of the poor/middle class people are subjected to 35 percent customs duty plus 15 percent additional duty, 17 percent Sales Tax plus three percent additional tax and 5.5 percent income tax ie almost 100 percent impact of levies are applied on the import of motorcycle spare parts. It will not be out of place to mention here that above 3 to 4 billions are just 50 percent to 55 percent share of legalised imports, whereas 45 percent to 50 percent revenue of the government is hijacked by the smugglers reason being highest tariff/addl duties, resultantly, smugglers are promoted to do their jobs without paying a single penny to the Government.
The association understand that government revenue can grow more than 45 percent to 50 percent as against existing revenue generated which is just less than 50 percent of legalised import. The government is just receiving almost less than 50% revenue reason being that smuggled goods are flooded in the market mainly through Pak-Afghan borders linked with KPK and Balochistan beside others, just because of high tariff and additional duties, whereas smuggled goods are being used by the local assemblers, resultantly losses to government exchequer in addition to flourishing flying invoices..
(A) That Custom Duty be reduced from 35 percent to 20 percent on the under mentioned items of Motorcycle spare parts under chapter 8700-0000 respective headings. 7315:1910, 8409:9111, 8483:5010, 8407:3110, 8532:3010, 8536:5021, 8536:5021, 8714:1910, 9029:2011, 8483:9020, 8483:1012, 8483:6091, 8544:4221, 8532:3010, 8714:1990, 8421:3110, 8481:8020, 8409:9111, 8512:2010, 8536:5021, 8511:3010, 8714:1920 (B) Abolish 15 percent additional duty imposed under S.R.O.693 (I)/2006 dated 1-7-2006 and S.R.O is amended accordingly.