Used cars import to devour Pakistani foreign exchange

Used cars import to devour Pakistani foreign exchange

The relaxation announced by the Federal Government in import policy of used cars will not only put an additional burden on the country’s import bill, but also to devour preciousforeign exchange of the country. 

The decision to allow reconditioned luxury automobiles up to five years old will be misused by elite class at the cost of the foreign exchange reserves and revenues in terms of taxes and duties.

Giving depreciation facility on the imports of luxury items means to encourage imports of luxury cars, when there is not duty on it.

Sources told The Nation (Pakistan) that a strong influential lobby of ruling elite is busy conniving with some officials to mislead the Govt and have almost managed to convince the Prime Minister that allowing used cars imports against auto industry development programme (AIDP) will benefit the consumer giving them choice and bringing the prices of locally made cars down.

The decision is not conducive even the time when government campaigning for RGST and allow luxury vehicles for influential class particularly parliamentarians after waiving taxes, sources said.

They demanded of the Government to impose ban on the imports of luxury automobiles across the board instead proving depreciation facility and age relaxation. It is pertinent to mention here that the Economic Coordination Committee is likely to discuss the import policy of luxury cars in its next meeting subsequently it has revised the age-limit of usedcars.

The Government has recently allowed up to five years old reconditioned cars aimed at creating manufacturers competition in the local markets to reduce the dominance of local assemblers.

According to the sources, the ruling government seems active to benefits influential people as it gradually phased out duties on the luxury cars and now looking for relaxing its age limits in its parallel policy of car imports.