The ministry of commerce has reportedly sought data from the ministry of industries and production (MoI&P) on buses, trucks, vans, tractors and pickups. The data will be placed before the Economic Co-ordination Committee (ECC) of the Cabinet in its next meeting, sources close to the secretary industries told Business Recorder.
The commerce ministry officials claim that the ECC, in its meeting on March 1, 2011 increased the depreciation from 50 to 60 percent for assessment of duty and taxes on the imported used cars, but the press release issued by the finance ministry was silent about any such decision.
The commerce ministry, in its letter written on March 2, 2011 stated that the ECC of the Cabinet in its meeting on March 1, 2011 directed the commerce ministry to give a presentation on buses, trucks, vans, tractors and pickups. "The MoI&P is requested to furnish information on major producers of vehicles along with their respective prices for each year since 2000," sources added.
Sources said the issue of depreciation was taken up in the ECC hurriedly in which FBR Chairman Salman Siddique stated that the government should give space to new OEMS for manufacturing in auto sector but by safeguarding the present OEMS, depreciation and other issues would be addressed in the next meeting of the ECC.
According to official statement, the ECC has sought a detailed presentation on determination of the data on Completely Knocked Down (CKD) kits for new entrants: a. Components, parts and CKD kits not manufactured locally at 50 percent of the existing rate of 32.5 percent ad val. customs duty. b. Components, parts and CKD kits manufactured locally at 50 percent of the prevailing rate of 50 percent ad val. customs duty.
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