SRO for 3-year used car import issued

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ISLAMABAD - Despite strong opposition from National Assembly Standing Committee on Finance Revenue and Economic Affairs, the Commerce Ministry on Wednesday issued statutory regulatory order (SRO) for reduction in the limit from five to three years for used imported cars. The Commerce Ministry has issued the statutory regulatory order for reduction in the limit from five to three years for used imported cars as decided by the Economic Coordination Committee (ECC) of the Caibnet. The ECC had on November 22 approved a summary for the ban moved by the Ministry of Industries, which falls under the control of Deputy Prime Minister Chaudhry Pervaiz Elahi.

The Public Accounts Committee and  National Assembly Standing Committee on Finance and Economic Affairs have shown concerns over the ECC decision to reduce the age limit of used imported cars, as the Committee members were of the view that decision would hugely benefit local car manufactures who actually were only assembling cars in the country. However, the Commerce Ministry did not consider the reservations of the two committees and issued the SRO.

The PAC was informed by Federal Board of Revenue (FBR) that government would suffer an annual loss of Rs17 billion in duties if it went ahead with its decision. Meanwhile, the National Assembly Standing Committee on Finance and Revenue had also opposed the ECC decision at a meeting on Dec 4 and asked the government “not to issue statutory regulatory order (for reduction in the limit from five to three years for used imported cars as decided by the ECC) unless two studies by the NTC and CCP are completed”.

The Commerce Ministry had engaged the NTC and CCP to study and analyse the market conditions, impact of policy changes, market behaviour and the cost of production before suggesting fresh changes.

 

Courtesy: The Nation


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