Former chairman All Pakistan Motorcycle Spare Parts Importers and Dealers Association (MSPIDA), Faisal Khalil has urged the government to abolish additional duty and reduce customs duty and fixed it at 15 percent on motorcycle spare parts to curb its smuggling and to assured availability of goods quality spare parts at affordable price.
Speaking at a meeting of motorcycle dealers, he said it was welcoming the Nawaz Sharif once again become Prime Minister of the country and hoped that long pending issues of members of MSPIDA would be resolved.
He said at present Pakistan importing quality motorcycle spare parts from China, Malaysia and Vietnam, which were not only popular in motorcycle users but also increased life of the bike. He said that high rates of taxes were an incentive for smugglers to boost their activities on the other hand government was losing revenue.
He claimed that import of spare part through legal channel declined whereas smuggling of spare parts on increase. He was of the view that reduction in import duty and abolition of addition duty would pave the way of availability of spare parts at much reduced prices as compared to prevailing prices.
Faisal Khalil said the government was losing huge revenue due to smuggling of motorcycle''s spare parts in big quantity. He was of the opinion that government would get more revenue by reducing import duty because it would help curbing smuggling, and import through legal channel would increase. He said preparation of federal budget 2013-14 was in final shape and expressed hope that demands of motorcycle spare parts imports would be considered in the next budget.
He pointed out that in budget 2012-13, it was announced that no duty would exceed 30 percent whereas the duty structure on imported motorcycle spare parts included 35 percent import duty, 15 percent additional duty. He suggested that customs duty on motorcycle spare parts be reduced from 35 percent to 20 percent and additional duty be abolished.