Automakers Ask Govt. Not to Liberalise Used Car Imports – RS News

Automakers Ask Govt. Not to Liberalise Used Car Imports

used car imports

The automakers have warned the government against the liberalisation of used car imports as it would lead to the closure of the auto industry and would affect plans for setting up new vehicle plants in the country.

Abdul Waheed Khan—the Director-General of the Pakistan Automotive Manufacturers Association (PAMA) said in a letter addressed to the commerce secretary that a meeting on the liberalising of the used car imports is anticipated to be conducted on Monday and they have not been invited.

He added that they are surprised by what the meeting discussed without them and without those who are uncontrollably working to establish new car plants in the nation—the new investors.

The association indicated that 2 months after the announcement of the budget a change have taken place at the FBR and it had reached the government for liberalising the used import vehicles, apparently for revenue reasons.

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PAMA suggested that they consider this to be a soft point of the government at the moment which could be acquired by changing tariffs and better collection and enforcement steps.

The association said that the auto industry was quite disappointed by the decision of FBR as already the industry had been getting affected since the month of April 2018 when the earlier government placed a ban on the purchase of new vehicles by the non-filers of tax returns.

The letter further mentioned that things have worsened with the implementation of additional taxes and duties on the vehicles, together with extensive depreciation of the rupee, all numbers have surged except for sales and production, which has decreased excessively.

The association has asked the Commerce Division from taking any action which would result in the closure of the industry.

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