KARACHI: The motorcycle spare parts traders have urged the government to decease the import duties from 35 percent to 20 percent.
All Pakistan Motorcycle Spare Parts Importers and Dealers Association (APMSPIDA), in its proposals for the budget 2015-16, also urged the government to abolish additional duty on import of motorcycle spare parts falling under chapter 8700-0000 respective headings.
APMSPIDA Chairman Faisal Khalil, in a statement, maintained that motorcycles are the cheapest mode of transport for the poor, which unfortunately are subject to 35pc custom duty plus 15pc additional duty, 17pc sales tax plus 3pc additional tax and 5.5 pc income tax. Almost 100pc burden of duties is put on the importer of motorcycle spare parts. He assured that Government revenue will grow by 45pc to 50pc if the legal import of these spare parts is facilitated and encouraged.
The Association’s members contribute 3 to 4 billion of rupees to the national exchequer in the shape of duties, in addition to providing over 400,000 jobs, he said. He alleged that the smuggled spare parts are being used by the local assemblers, which causes huge loss to the government revenue besides flourishing the flying invoices. He demanded inclusion of spare parts of motorcycles in free trade agreements with China and Malaysia.
Faisal Khalil said the Association has been working for the last many years for promoting legal trade of motorcycle spare parts in the country and for the betterment of its members. He said Pakistan’s engineering industry has 0.1pc share in the world’s total business worth $ 400 billion, which is second largest sector after textile.
The APMSPIDA Chairman also suggested that time limit of 45 days be fixed to decide the revised petition filed under section 25D of the Customs Act-1969. At present, the Customs valuation department in many cases takes years to decide the matters, he pointed out.
