KARACHI: Pakistan Automotive Manufacturers Association (PAMA) and All-Pakistan Motor Dealers Association (APMDA) have locked horns over the issue of used cars.
The PAMA has severely criticised the government for giving ‘unfair’ advantages to dealers and importers of used cars. The auto manufacturers said that such advantages to dealers were causing damage to not only the local industry, but the national exchequer as well, which is suffering losses due to rampant under-invoicing and misuse of used car import policies.
They said that under SRO 577(I)/2005, duties and taxes rates were fixed in US dollars way back in 2005 and, except once in 2008, were not appropriately revised , whereas ever since the prices of used vehicles have increased substantially.
The association said that under SRO-499 (I)/2013, hybrid vehicles are allowed to be imported at a concessionary rate of duties and taxes in Complete Built-up Unit (CBU) condition only. Pama proposed that the existing concession to CBUs be also extended to import of auto parts and CKD kits, enabling local production of similar hybrid vehicles.
Meanwhile, the All-Pakistan Motor Dealers Association (APMDA) said that local assemblers are enjoying the monopolistic and consumer-unfriendly benefits of a ban on used vehicles import for the last many years.
The APMDA alleged that assemblers are fleecing people by demanding 100 per cent advance payment at the time of booking of a car, while the delivery of a car takes three to six months.
