KARACHI: The government has been urged to provide level-playing field for assemblers of Chinese motorcycles, as the present policy is making low-priced bike makers uncompetitive.
In its budget proposals for 2017-18, the Association of Pakistan Motorcycle Assemblers (APMA) said the SME sector and low-priced bike makers and their vendors need government support, as some issues are still unresolved. The policy 2016-21 on auto sector has not covered Chinese-based small bike assemblers and their vendors, it added.
Only a few Chinese bike assemblers are doing satisfactory business, while others fail to enjoy good sales due to competitive prices, tax evasion, lack of uniform policies and registration of all dealers / retailers in the sales tax at retail stage, the association added.
APMA chairman Muhammad Sabir Shaikh said that the government should evolve a uniform policy on valuation at the import stage for different raw materials and components and all kinds of units and assemblies.
“Uniformity in valuation will curb under-invoicing, mis-declaration and smuggling,” he said. This will also eliminate five to 10 percent ‘illegal’ money, which is demanded by the Customs officials at the time of clearance, he claimed.
A number of concessionary SROs should also be abolished immediately. “Uniform rate of Customs duties will encourage industrial and business activities, open new job avenues and control tax evasion,” the association suggested.