KARACHI: Chairman, All Pakistan Motorcycle Spare Parts Importers and Dealers Association (APMSPIDA), Faisal Khalil has appealed for reduction in import duty for motorcycle spare parts.
In a statement Friday while seeking reduction in import duty from 35 percent to 20 percent, he also asked for abolition of 15 percent additional duty in the forthcoming Budget 2015-16 to encourage legitimate import and discourage smuggling.
He said motorcycle being the cheapest means of transport for masses needed to be treated under special category and therefore levying 35 percent customs duty, 15 percent additional duty, 17 percent sales tax, three percent additional tax and 5.5 percent income tax, that is, almost 100 percent impact on the import of its spare parts was not justifiable.
Faisal Khalil said importers of spare parts were paying Rs 3 billion to Rs 4 billion to the government exchequer which was just 50 percent to 55 percent share of legal imports, whereas 45 percent to 50 percent government revenue was hijacked by the smugglers due to high tariff rate.
He said that it was due to exorbitant high tariff that local markets were flooded with smuggled goods and that the argument that high tariff were meant to protect local industry holds no ground.
The APMSPISA President suggested that customs duty be reduced from 35 percent to 20 percent on under mentioned items of motorcycle spare parts under chapter 8700-0000 respective headings.
7315:1910 8409:9111 8483:5010 8407:3110
8532:3010 8536:5021
8714:1910 9029:2011 8483:9020 8483:1012
8483:6091 8512:2010
8544:4221 8532:3010 8714:1990 8421:3110
8481:8020 8714:1920
Moreover, 15 percent additional duty imposed under SRO 693(1)/2006, dated July 1, 2006 also be abolished and the SRO be amended accordingly.
It was also suggested that time limit of 45 days be fixed to decide the review petition filed under section 25 D of the Customs Act 1969.
He also sought suspension of all valuation rulings relating to imports of motorcycle for one year enabling the traders to import these at the lowest price from the international market.
