ISLAMABAD: Pakistan Association of Automotive Parts and Accessories Manufacturers (PAAPAM), led by Chairman Abdul Rehman Aziz, and representatives of mobile phone manufacturers met with Federal Minister for Commerce Jam Kamal Khan to get addressed various issues impacting local manufacturing of automobiles and mobile phones.
Abdul Rehman Aziz, Chairman of PAAPAM, called for the imposition of regulatory duty (RD) across the board on all old and used vehicles. He explained that 70% of used car imports, which are below 1,300cc, are exempt from the newly imposed RD in the Finance Bill 2024-25. In the budget for 2024-25, a 15% RD has been imposed on imported used cars exceeding 1,300cc at the request of local assemblers. However, this RD did not resolve their issue as small vehicles, which are imported in large numbers, are exempted. Represen-tatives of mobile manufacturers, led by Aamir Allawala, demanded a ban on the import of old mobile phones to support the local industry.
They also requested a specific rate for the General Sales Tax (GST) instead of the current 18% GST based on value, which, according to them, could lead to mis-declaration of values at the import stage and adversely affect the local industry.
PAAPAM urges govt to take steps thru budget to ‘rescue’ auto parts industry
Federal Minister Jam Kamal Khan assured that these concerns would be addressed in consultation with the Ministry of Industry and Production, the Ministry of Finance, and the FBR.
He pledged all possible support to encourage local manufacturing of auto parts and mobile phones and emphasized to the industry representatives the importance of keeping export as their primary goal.
Copyright Business Recorder, 2024
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