KARACHI: Automakers have urged the government to withdraw SRO 577 which is giving undue advantage to the used car traders in duty and taxes, resulting into significant revenue loss to the government.
In a joint statement, Abdul Waheed, Director General of Pakistan Automotive Manufacturers Association, and Usman Malik, chairman of Pakistan Association of Automotive Parts Accessories Manufacturers said that importers forge documents to import used cars, evade taxes, and sell old cars at prices equal to locally produced new cars to customers.
The statement said the rates fixed in US dollar term in SRO 577 are very low. The importers of the used cars pay the duty and taxes of $4,400 on 800cc, which is $11,392 under the normal regime. The depreciation allowance of 36 percent on duty and taxes on up to 800cc car under the said SRO comes to $2,816 compared with duty and taxes under normal regime of $7,291, it added.
Similarly, the government is losing $7,337 on 1,000cc, $6,420 on 1,300cc, $6,879 on 1,500cc and $5,653 on import of 1,800cc used car.
The importers of used cars should be held accountable by the government for violating the Constitution of Pakistan as they are involved in illegal activities and working against the national interest, demanded the automakers.
