Duty on vehicle tracking system to be cut

In a major move to control thefts of cars, the government has decided to reduce customs duty on the import of Vehicle Tracking System (VTS), which is latest sophisticated satellite technology used for tracking of stolen automobiles, sources told Business Recorder here on Thursday.
In this connection, the Central Board of Revenue (CBR) has moved a summary to the Economic Co-ordination Committee (ECC) of the Cabinet for the rationalisation of import duty on VTS.
The CBR has proposed to the ECC to reduce customs duty from 25 percent to 5 percent for encouraging use of this technology in Pakistan.
The ECC will examine the proposal in the upcoming meeting on February 17.
Sources said that VTS is an expensive system and only owners of expensive cars can afford it. The cheap installation of system in cars would be a real unpleasant shock for the car thieves as with the click of a computer mouse, a satellite tracking system allows remote operators to seize control of the stolen vehicle, bring it to a halt, and snap its locks shut till the police comes.
Under the system, an implanted device uses Global Positioning System technology to signal a vehicle's location via SMS messages over a mobile phone network.
Moreover, the operators of the tracker system could follow the movement of thousands of vehicles on computer screens at the control centre.
The co-ordinates of a stolen car can be given to police to guide patrol cars to the scene and computer can immobilise the car and lock its seat-belts, doors and bonnet.
In certain VTS, there is a panic button that sets off an alarm in the control centre and help thwart carjackings and kidnappings attempts.
Sources were confident that the reduction in duty would substantially reduce the prices of VTS system along with expected reduction in existing car Locks/remote devises available in the local market.
Some tracker systems could record a vehicle's movements as it can be programmed to turn off a car's engine if it tries to leave a designated area.
Sources added that the Ministry of Science and Technology has also given its concurrence to the proposal and said that the new technology should be encouraged in the country.
For reduction in duty, if the CBR introduced change in the import tariff under Pakistan Customs Tariff (PCT), the reduction will have to be made in budget 2004-2005. Otherwise, the CBR may issue an SRO/Order or special order for slashing the duty structure.