The Federal Minister for Finance,
I beg your attention to the 35 per cent customs duty on the import of motocycle spare parts. Through this letter, I would like to request you that the Ministry of Finance and Federal Board of Revenue should review the structure of customs duty on import of motorcycle spare parts in upcoming Budget 2014-15, as reducing taxes and duties is the only way out to curb smuggling of motorcycle spare parts.
The government should decrease customs duty on motorcycle spare parts from existing 35 per cent to 20 per cent in wake of curbing illegal means of import of these parts, as increase in smuggling is destroying the local motorcycle spare parts’ industry.
The high rate of taxes is a motivation for smugglers to boost their activities and the government is also losing its huge amount of revenue.
On one hand, the decrease in customs duty on motorcycle spare parts will increase the import through legal channel while, on the other hand there would be a significant decline in the smuggling activities.
The importers of motorcycle spare parts, right now are paying a high percentage of taxes including including 35 per cent customs duty, 15 per cent additional duty, 1 per cent FED and 19 per cent sales tax.
I opine that the reduction in customs duty would not only result in increase of government revenue but also help to uplift national economy. Decrease in the customs duty on spare parts of motorcycles will also have a positive effect on the common men, as motorcycle is the need of middle and lower classes.
I hope that the ministry will take appropriate and effective steps in order to decrease the customs duty on the import of motorcycle spare parts in forthcoming budget.
All Pakistan Motorcycle Spare Parts Importers and Dealers Association