The import of used vehicles only in first four months of this year has resulted in estimated loss of more than 12 billion rupees to the national exchequer in terms of duties and taxes, that too only for vehicle less than 1800cc, said Iqbal Shah, Vice Chairman Pakistan Automobile Assemblers Dealers Association (PAMADA). "As per data from customs, 18664 units of all segments were imported in January April 2016 while the number of imports was 12401 in January-April 2015, showing 51 percent increase," he added.
The import of used cars of different segments in January to April this year has almost doubled as compared to the imports in the same period last year, creating huge losses for local auto and vendor industries, besides inflicting huge loss in duties to the national exchequer.
He further stated that the local auto industry has been questioning since long the rationale behind the import of used cars at the time when the government is striving to attract foreign investors. "The policy makers are working at cross purpose as on one hand the government envisions global car makers to enter the Pakistani market and on the other hand liberal import of used cars is allowed,' said Iqbal.
According to the data, 3394 units of economy segment vehicles were imported in January-April 2016 against the 1902 units imported in January-April 2015. Similarly, 6666 units of small low segment were imported in January-April 2016 against 4541 units in the same period last year. While 2251 units of small high segment were imported in January-April 2016 against 1247 units in the same period last year.
The imports of van, minivan, pick-up segment saw huge increase in the said period. Total 4869 units of the said segment were imported in January April 2016 against 2997 units' import in the said period of last year. Iqbal Shah added that this heavy used car imports, being done through exploiting baggage and gift schemes, is denting the local industry and national exchequer.
No country with domestic auto industry allows for used car imports, in fact they discourage it by using all sorts of tariff and nontariff barriers. "Japan and South Korea are two big auto producing nations that have almost negligible imports. All industrialised nations like Korea, India, and Thailand protect their local industries by discouraging imports," he added. "The government should revise the duties on used cars based on current price level and at least give the auto and parts manufacturing industry in the country a level playing field which is responsible for livelihood of hundreds of thousands of citizens of the country," said Iqbal.?
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