ISLAMABAD: APMDA has asked the government to give relaxation in import duties to the dealers of used cars as import of used vehicles has fallen to 22,185 units in FY2013-2014 compared to 44,767 in FY2012-13 because of high import duty.
According to All Pakistan Motor Dealers Association (APMDA), imports of 1301cc to 1,500cc cars stood at 2,646 units compared to 12,255 in previous year. And surprisingly only 2 units have been arrived in category of 1,501cc to 1,600cc in FY 2013-14 compared to 48 units in FY2012-13.
APMDA Chairman H.M. Shahzad said local car assemblers failed to lift sales in the middle of constant decline in imports of used cars. Cut in age limit of used cars to three from five years has depressed the import of used cars and government’s revenue collection, he said. He said that in FY2014-15 budget, the government increased the import duties on used cars. Besides, retail price of used cars has also been affected by change in withholding tax. “People may now find it harder to pay for a car”.
In a letter to Finance Minister Ishaq Dar, APMDA chairman asked the government to realize that car is an essential mean of transport in the absence of proper public transport service.
