All Pakistan Motor Dealers Association (APDMA) has rejected the Commerce Ministry's order on a reduction in the age limit of imported used cars from five to three years. "The Commerce Ministry ignored the recommendations of the NA Standing Committee on Finance and PAC. The government has chosen to bear the loss of revenue at the cost of pleasing the assemblers who have always circumvented government decisions," said, H M Shahzad, Chairman APDMA.
The Association presented the following data in support of its stance: (i) the government has been paid Rs 16 billion (all taxes) from July to November 2012 through import of 26000 used cars which it will lose by this decision; (ii) Pakistan made cars are cheapest in the world; (iii) local Corolla 1300cc XLi (std) without any accessories sells at Rs 16,00,000;(iv) pre- owned imported Corolla XCO 1500cc in impeccable condition and with all accessories and safety equipment is available for Rs 14,00,000 (including duty Rs 6,50,000);(v) local content in Corolla is claimed as $4400 per unit. Even if it is correct, this is only 25 percent ost of the cars which is "peanuts"; (vi) challenges the data that there are 3000 parts manufactures employing 2.2 million people claimed by PAPAAM.
The Association has claimed that no foreign exchange is used in import of used cars as these cars are bought by overseas Pakistanis and imported under TR, Baggage & Gift schemes. "We have decided to continue our fight and will knock on the doors of the Supreme Court," Shahzad concluded.