The auto vehicle spare parts industry is contributing to the strengthening of the country’s economy. Former President Multan Chamber of Commerce and Industry (MCCI) Israr Ahmad Awan has urged his voice for auto spare parts importers and agitate their issues in concern government departments and ministries resolve their long pending issues
Mian Israr Ahmad Awan said that auto industry has been repeatedly appealing to the government to reduce the duties and taxes on motorcycle spare parts and abolish the additional duty so as to encourage the importers of motorcycle spare parts and discourage smuggling
He further said that the rate of customs duty was low till a few years ago due to which there was a significant reduction in smuggling but due to increase in taxes smuggling surged. He said that the government has imposed 35% customs duty, 11% additional customs duty, 17% sales tax, 3% additional sales tax and 5.5% income on motorcycle spare parts importers. Taxes have been levied and thus importers are carrying the burden of 85.5% duties and taxes Auto dealers sought the help of MCCI to agitate these issues so the government should minimize these taxes and duties in coming budget for the year 2021-22 to encourage legitimate imports of spare parts.
He said that auto importers have been repeatedly appealing to the government to reduce the duties and taxes on motorcycle spare parts and abolish the additional duty so as to encourage the importers of motorcycle spare parts and discourage smuggling Faisal Khalil further said that the rate of customs duty was low till a few years ago due to which there was a significant reduction in smuggling but due to the increase in customs duty the smuggling thrive. He said that importers of motorcycle spare parts have been brought to the brink of disaster due to heavy duties.
He said that continuous decline in tariffs poses a serious threat to the country’s economy. Smuggling of spare parts from China through Afghanistan and other borders has severely affected the legal import of motorcycles and the local spare parts industry has suffered huge losses.
He said that it is ironic that 85.5% duty and taxes are imposed on auto spare parts, heavy taxes on auto spare parts should be abolished as auto is not a luxury item but a ride of poor people. Heavy duties and taxes on auto spare parts is tantamount to putting salt on the wounds of the poor,
He said that Prime Minister Imran Khan always encourages legitimate importers and he expressed hope that he would reduce duties and taxes on auto spare parts to reduce smuggling these spare parts. The increase in smuggling is tantamount to harming Prime Minister Imran Khan’s efforts to stabilize the country’s economy.
