KARACHI: The removal of the federal excise duty on local car assemblers but leaving it intact on imported cars, reducing the depreciation period from three to two years and increasing customs duty on imported cars by 10 percent compared to reduction from 30 to 25 percent would hurt the used car sales this year.
Talking to Customs Today, All Pakistan Dealers Association Chairman HM Shahzad said the prime minister had promised to introduce an auto policy that would benefit used car buyers, a market comprising the upper middle class but it was a total different ball game when Budget 2014-15 was announced.
Reducing the depreciation period from 2 to 3 years would bring a Japanese car in great condition at the price that they are paying for the brand of locally assembled Mehran car still being produced using the technology now obsolete, claimed Shahzad.
And if the government allows import of cars up to five years old then Japanese cars could be retailing for Rs 500,000 thereby giving freedom of choice to people in terms of value and price, he added.
