Mon. Sep 23rd, 2019

FBR quietly making efforts to liberalize imports of used cars

Aftab Ahmed

Islamabad:Federal Board of Revenue (FBR) is quietly making efforts to liberalize the imports of used vehicles in an effort to enhance revenue collection that has upset the local car assemblers.
“We are suffering since April 2018 when the outgoing government bucked at the industry, in their budget, and imposed purchase ban on non-filers. More than a year since, things have a lot worsened with the imposition of additional taxes and duties on automobiles, coupled with massive depreciation of Pak Rupee, all numbers have increased except production and sales, which have down massively,” The Pakistan Automotive Manufacturers Association—PAMA—has conveyed to the Ministry of Commerce.
The Pakistan Automotive Manufacturers Association—PAMA—has approached the Ministry of Commerce for concealed efforts of FBR for liberalizing the imports of used vehicles, said a letter of the PAMA addressed to Ministry of Commerce and available with NEWZTODAYS.COM
Two months down the line since budget, the letter further revealed that the traders appear to have calm down but quite surprisingly, a change heart appears to have taken place at FBR and they (FBR) understandably, approached the government for liberalization of import of used vehicles, apparently for revenue reasons.
According to figures of the Pakistan Automotive Manufacturers Association (PAMA), Honda Civic and City production and sales plunged by 49pc and 68pc to 2,371 and 1,452 units, respectively in July of 2019. Similarly, Toyota Corolla’s output and volume came down by 39pc and 57pc to 2,827 and 1,981 units, respectively.
This FBR move would definitely discourage the new investors for setting up new car plants in the country and also against the spirit of auto policy 2016-21, laments a senior officials working at newly OEMs in the country.
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