KARACHI: Chairman All Pakistan Motorcycle Spare Parts Importers and Dealers Association (APMSPIDA), Khalid Waheed has said that motorcycle spare parts imports are over burdened with customs duty and additional custom duty on motorcycle spare parts.
The government has levied a total of 85.5 percent duty on commercial importers of auto parts, leaving legal importers of motorcycle spare parts in trouble and encouraging spare parts smugglers.
In a meeting with the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) President Mian Nasir Hayyat Magoo, Khalid Waheed sought help of FPCCI to raise the motorcycle spare parts importers issues in concerned government departments and ministries to resolve their long pending issues.
Former Chairman APMSPIDA Faisal Khalil said that we have been repeatedly appealing to the government to reduce the duties and taxes on motorcycle spare parts and abolish the additional duty so as to encourage the importers of motorcycle spare parts and discourage its smuggling.
Faisal Khalil further said that the rate of customs duty was low a few years ago due to which there was a significant reduction in smuggling but due to increase in taxes smuggling surged.
He informed FPCCI President that the government has imposed 35 percent customs duty, 11 percent additional customs duty, 17 percent sales tax, 3 percent additional sales tax and 5.5 percent income tax on motorcycle spare parts. Thus importers are carrying the burden of 85.5 percent duties and taxes.
Faisal Khalil sought the help of FPCCI to raise these issues so the government should minimise these taxes and duties in coming budget for the year 2021-22 to encourage legitimate imports of spare parts.
He said that importers of motorcycle spare parts have been brought to the brink of disaster due to heavy taxes and duties.
He said smuggling of spare parts from China through Afghanistan and other borders has severely affected the legal import of motorcycles and the local spare parts industry has suffered huge losses.
FPCCI President Mian Nasir Hayyat Magoo said that it is ironic that 85.5 percent duty and taxes are imposed on motorcycle spare parts.
Heavy taxes on motorcycle spare parts should be brought down as motorcycle is not a luxury item but a ride of poor people.
He said that Prime Minister Imran Khan always encourages legitimate importers and expressed hope that he would reduce duties and taxes on motorcycle spare parts to overcome its smuggling.
The increase in smuggling is tantamount to harming Prime Minister Imran Khan's efforts to stabilize the country's economy.
Copyright Business Recorder, 2021
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