A former commerce minister and PPP leader, Chaudhry Ahmed Mukhtar, has said that the government should cut down import duty on 'up models' of cars to address the issue of delay in delivery of new cars to the buyers but should refrain from allowing import of reconditioned cars.
He cautioned that import of reconditioned cars would wash away the domestic industry and subsequently cause loss to the national exchequer.
Talking to Business Recorder, Ahmed Mukhtar said that permission for import of reconditioned cars would wash away the domestic industry, which is showing considerable increase in its production.
He said that it would be wise for the government to reduce duty on import of all 'up models' of cars for which the buyers are being forced to pay premium by 50 percent.
In his opinion, the import of reconditioned cars, if allowed, might give additional revenue for the time being but in the long term it would adversely hit the country as revenue from auto industry would keep on shrinking with the passage of time.