The auto industry has requested the federal government to impose a 25 percent regulatory duty on imported small (used) cars below 1,300cc while maintaining a 15 percent regulatory duty on vehicles above 1,300cc.
The rampant and illegal import of used vehicles into Pakistan has led to significant job losses in the automobile industry and worsened the misuse of schemes intended for overseas Pakistanis, which continues to undermine the industry, the Pakistan Association of Automotive Parts & Accessories Manufacturers said in a letter to the Prime Minister on Tuesday.
“Our Association, representing 300+ auto parts manufacturers, was very hopeful that Federal Budget 2024-25 would contain strong measures to discourage this illegal trade which is also used as a parking lot for black money. We are seriously dismayed by the Budget announcement regarding the import of used vehicles. The Finance Act has imposed a regulatory duty of 15% on imported used vehicles but only above 1,300cc engine capacity,” the association said.
“This is very disappointing for the 400,000 Pakistanis directly employed by the auto parts industry. The Customs import data for the period January to May 2024 clearly demonstrates that 62% of all used cars imported into Pakistan are below 1,300cc”, the letter explained.
The association also requested the following measures to provide a level playing field to the domestic industry on the pattern of other automobile-producing countries:
- Currently, the value of a used vehicle is depreciated at 1% per month from its manufacturing date for the calculation of the duty amount. This depreciation rate should be reduced to 0.5% per month.
- As the vehicle is supposedly imported on behalf of overseas Pakistanis under Gift, Baggage, or Transfer of Residence schemes, the vehicle must be first registered in the name of the importer and subsequent transfer should only be allowed after a period of three years.
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A big slap needs to be punched to the shameless organisation who mentioned this. Pakistani companies are selling selling scrap to pakistanis. Why don’t PKDM manufactures that quality vehicle that is being imported at that cost? When pakistani people don’t want to put efforts, they start blame game.
What being offered in a 660 cc JDM, is what Pak Automobile cant even think of. Those features are not even in 8-10 million priced crap.
The Pakistan Auto Industry is looting their customers by providing them 3rd class cars in the Country.
They should first of all match their quality with International Standards and then ask for favors.
3 major car manufacturers have increased their cars’ prices but have never thought of improvement in quality and safety aspects of the vehicles.
Auto Industry seeking such demands should not only be publically hanged but also stoned and dragged in the streets. The local assembly of cars should in fact be totally shut down. They are producing scrap and selling it at the price of gold. Unfortunately, there is no consumer protection in this country and only the mafia rules while those in power sleep.
This is bullshit. Import of small cars has pit the three major companies in a fix. First they could say what ever they want and get away with it . Now these small imports is forcing them to put out products that are worth the price and that is what is killing them. For decades suzuki has sold the shit of product mehran to the masses and is failing the sel its faulty shit in new makeovers. Honda and Toyota has also done the same. They are making shitty products and charging more for base cars then they should actually cost. That is the reason they want this. They are losing to better cars even though they are second hand imports. These imports are comfortable, reliable, and have more features in them and top it all off they are five to ten years old. Its all about the money they lose to such wonderful cars they don’t want to compete with. I have had the luxury of owning one of these imported cars so i know what they are crying about. Even the big vehicles coming are better then what they dish out.
People are losing jobs in the industry is because they are stopping progress and demand more money for vehicles that are up to standards, have less features and comfort. If there products were good then people would have never opted for such cars in the first place. Secondly why should import be charged so much. When that is what an average man can afford. Why should the common be targeted from getting any kind of comfort from theses cars when the top three auto leads in Pakistan can’t provide same or better quality.
Haha what the point of comments when even that will be. Censored by consensus. Why just ask the public to shut up