Govt urged to give motorcyclists concessions on taxes

KARACHI: In absence of an appropriate public transport system especially in the city of Karachi, motorbikes are the poor and the middle class's ride and the motorbikes have been deprived of concessions and competence, said Economic & Financial Analyst Ateeq Ur Rehman.

He said motorbikes not only have to pay the huge cost of petroleum prices but also the heavy duties on spare parts they buy , like Import Duty 35%, Additional Duty 11 %, Sales Tax 17% and Income Tax 6%.

At least the government should facilitate them and give relief by reducing the duty tariff on imports of spare parts but also plan some concessions on the petrol they buy.

This is an essential ride for them to commute, go to the office or attend any family gathering, etc. In the lack of infrastructure, circular railway, public transports like buses and taxis, etc. They should be allowed the maximum advantage of this ride which is predominantly missing.

He added that In Karachi only we have almost 5 million motorbikes, they pay enormous registration and excise fees in the government exchequer but they are deprived of any facility. Continuous neglection of this sector is a big problem and if not redressed will be difficult in future for a motorbike to absorb it. Also the budget has failed to address this critical issue and has been silent on the subject with the assumptions that they are planning to revise and raise the duty tariffs.

This is not only going to be big hindrance in the production of motorbikes indigenously but injuring the assembly line of motorbikes assembly business in the country. The government needs to seriously look into this expensive cost of production and by minimizing the duty tariff reduce the cost of a motorbike, which can turned into a large scale manufacturing industry and become a source of employment in future , like Japan, Vietnam and China.

Copyright Business Recorder, 2020