APMDA requests to open commercial imports of vehicles

In this critical time, federal government may earn above Rs 100 billion in the head of customs duty and other charges

KARACHI:  The federal government has started giving incentives to different industries like Agriculture, Construction Sector and All Pakistan Textile Manufacturers Association (APTMA) and others because of country’s economic slowdown amid coronavirus outbreak.

The incentives to these industries will definitely boost the country’s economy amid the COVID-19 attack in Pakistan while the government’s think-tanks also looking at more ways to earn money to protect jobs and create more employments.

“The government can earn more than Rs 100 billion in a year, if it allows the commercial imports of Electric Vehicles or refurbish small cars from Japan and other Asian countries,” said H M Shahzad, Chairman All Pakistan Motor Dealers Association (APMDA). The federal government is continuously ignoring the commercial imports of vehicle which could be a big earning source of federal government in this critical time.

Pakistan Auto industry, which future is bleak as the industry is being closed. All production plants of Suzuki, Toyota, Honda and others are closed all over the country.

Shahzad said, “the main reason behind closure of these plant as the demand of their vehicles have gone down by 60 per cent in last two-year while their vehicle prices have surged upto 50 per cent since 2019. A small 1,000 cc Cultus car which was around Rs 1 million in 2019, is being sold at around Rs 2 million, which approximately surged by 100 per cent in last two-year.  He said the Pak Suzuki launched its Alto-660 in Pakistan, which actual cost in India is Rs 400,000 Indian rupee, which this small car is being sold at Rs 1.4 million to Rs 1.6 million.

Thousands of employees of different car showrooms are jobless for last two years as the federal government had placed a ban on the import of vehicles under the language and gift scheme to protect local industry. But talking benefit of this restriction, the local giants including Pak Suzuki Motor Company, Indus Motors, Honda and others companies are producing sub-standard cars without any road safety technologies, he claimed.

He further claimed that there is no local car ‘Made in Pakistan’ nor these auto industries are providing any quality & standard in Pakistan so why government is only supporting them, why not government considering our demand to allow the commercial imports of refurbish cars so that the car lovers get an standard vehicles in 50 per cent cost compared to locally assembled cars.

Chairman APMDA said that the people and government are passing through a crisis like situation now owing to travel disruptions all over the world.

He further said that those vehicles imported under various baggage schemes are parked at port and waiting for payment of duties through encashment certificates from abroad. “This has become almost impossible due to travel and banking restrictions,” Shahzad said.

At this difficult moment, it would be prudent to allow payment of duties locally as was being done previously. This will solve government problem and it can earn a substantial revenue from it, he claimed

The Prime Minister Imran Khan is nowadays resolving long standing issues of the businesses to support them and boost the economic activity, therefore, Chairman APMDA requests the PM to intervene and allow the commercial import of used cars and restore the livelihood of hundreds of thousands of people connected with this business.

About The Author