Despite the ban on import of used auto machinery under Appendix-C of trade policy, 'auto mafia' in connivance with the alleged support of Custom intelligence officials posted at Chaman and Torkham borders had smuggled and flooded the local markets and Chinese goods were available at cheaper rates.
Talking to newsmen, President of Used Machinery Importers Association M Ayub Mughal said the Appendix-C of trade policy that imposed ban on import of a lot of used textile parts like circuit breakers, used bearings, compressor heads, industrial gate walls, air blowers and exhaust fans.
He alleged that a handful of Karachi, Lahore and Peshawar based auto importers having strong political support had misguided the commerce ministry policy making circles exercising curbs on import of used machinery, while causing a huge loss to the national kitty.
This miscalculated step of commerce ministry is not only depriving the government exchequer of billions of revenue loss in the form of duties and taxes but also rendering millions of transport employees jobless and forcing owners of vehicles plying on thousands of rural areas link roads to close their business.
He said a brand new bearing is being sold by Rs 2500, while the same used item is available at Rs 25 only. He questioned as to how a small scale transporter can afford to purchase costly textile machinery and used auto parts which are not manufactured in Pakistan. Mughal, who is also vice president of Faisalabad Chamber of Commerce and Industry (FCCI) said that it is high time government held dialogue with used machinery importers to sort out issues facing the concerned quarters who wanted to contribute taxes and stabilise the economy.
He said government had banned used textile machinery in 1998 to provide level playing field to all the stakeholders but smugglers foiled govt's bid to create revenue generation base on a sound footing in 2005. Genuine used machinery importers held meetings with the then CBR chairman to enhance tax base and bring the former into mainstream tax regime and decided to impose 35 percent duty taxes to clear the consignments of used machinery rusting at various dry ports in the country.
After issuing the SRO by CBR, used items were being released with 30 percent fine, which fetched a lot of revenue to national exchequer. He alleged that these goods were cleared without any hurdle from Lahore and Karachi ports because of corruption, but the same was confiscated at Faisalabad Dry Port. He demanded of the commerce ministry to negotiate with used machinery importers and withdrawal of ban on import of used parts.