Used vehicles: duty collection tumbles to Rs7bn in July-April

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KARACHI: Import of used vehicles continued to show negative trend as only 17,968 units were imported in engine capacity range of 660cc to above 3,000cc including jeeps (4x4) in July-April 2013-14 as compared to 41,281 units in the same period last fiscal year.

The government’s customs duty collection from the above imports plunged to Rs7 billion from Rs15bn collected in the corresponding period of last fiscal year.

Only 13,090 cars up to 1,000cc under various schemes were landed as compared to 23,779 units. From 1,001cc to 1,300cc, only 28 cars were imported as compared to 2,186 units.

According to data compiled by All Pakistan Motor Dealers Association (APMDA), imports of 1,301 to 1,500cc cars stood at 2,317 units as compared to 11,986 units. Nil imports were recorded in 1,501cc to 1,600cc in July-April 2013-14 as compared to 43 units in same period last fiscal year.

Only 1,772 units from 1,601cc to 1,800cc found way into the country as against 2,295 units. In 1,801cc to 3,000cc segment, only 26 units came from abroad as compared to 58 units.

Only 16 units of above 3,000cc were imported as compared to 74 units. In jeeps (4x4), around 719 units came into Pakistan as compared to 860 units.

Chairman APMDA H.M. Shahzad attributed steep fall in imports to wrong policies of the government like cut in age limit of used cars to three from five years coupled with reduction in depreciation limit.

He urged Finance Minister Ishaq Dar and FBR chief to allow import of 660cc cars without any age limit as the local industry does not roll out this low engine power cars.

The government should allow commercial imports of used vehicles up to five years of age limit, he said. Allowing commercial imports in addition to existing schemes for the imports of used vehicles under various schemes would be in line with the government’s policy of the documentation of the economy and would generate 100 per cent more revenue for the government, he added.

There should also be no regulatory duty on import of above 1,800cc vehicles as these vehicles are also not assembled in Pakistan, he said.

Published in Dawn, June 1st, 2014


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