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PAMA slams increase in used cars’ import

PAMA slams increase in used cars’ import

KARACHI: Pakistan Automotive Manufacturers Association (PAMA) Director General has expressed serious concerns at the rapidly increasing import of used cars, a press statement issued by the association said.

He said that it was alarming that in the first half of FY 2012-13 the figure of imported units was 5,512 and in the second half it had more than doubled to 11,314 units. PAMA DG said there was no apparent justification for this increase, which it described as massive abuse of the facility by traders.

It is an irony, he said, that there is much higher duty on a locally-manufactured car than an imported used car.

He referred to the impounding at the port of over one thousand used imported cars which had exceeded the permissible age limit. Many more such vehicles are likely to have been released in the past, he added.

The local automobile industry has been highlighting the abuse of schemes meant for overseas Pakistanis, it said, but no action was taken against unscrupulous importers, who have therefore continued their illegal activities unchecked.

The director general of PAMA said that over 12,000 used vehicles of all types were imported during the first half of FY 2013-14, which is over 12 per cent of the total market. As there is partial exemption in duty and taxes available to used cars the huge volume of imports has deprived the government of over Rs 7 billion in duties and taxes due to the lower duty fixed in accordance with SRO 577 in 2005.

He said it is going to be a decade now since the amount of duty on used vehicles was fixed in SRO 577.

The local industry is offering brand new vehicles at extremely competitive prices with complete warrantee and comprehensive after-sales support, thereby protecting consumer interests, the official statement of PAMA said.

The local industry provides more than 1.3 million jobs directly and indirectly and makes a 2.8 per cent contribution to the GDP, according to the statement.

The local industry continues to make staggering Rs 92 billion investments for introduction of new models. All this translates into Rs 80 billion annually in tax revenue to the national exchequer.

The industry is deeply concerned at these imports which are in violation of the law, the statement said, and praised the Federal Board of Revenue and Pakistan Customs for not clearing the impounded vehicles.