KARACHI: The motorcycle industry is over burdened with customs duty and additional excise duty on motorcycle spare parts.
The government has levied a total of 85.5 per cent duty on commercial importers on auto parts, leaving legal importers of motorcycle spare parts in trouble and encouraging spare parts smugglers.
The motorcycle spare parts industry is contributing to the strengthening of the country’s economy.
The Federation Chamber of Commerce and Industry (FPCCI) has been urged to voice for motorcycle spare parts importers and agitate their issues in concern government departments and ministries resolve their long pending issues
These views were expressed by Khalid Waheed, Chairman All Pakistan Motorcycle Spare Parts Importers and Dealers Association (MASPEDA) along with former Chairman Faisal Khalil and others during a meeting with FPCCI President Mian Nasir Hayyat Magoo.
Former Vice Presidents of FPCCI Khurram Ijaz and Khurram Tariq Saeed, Shabir Mansha Chhara, Nasir Maqbool, Liaquat Ali Sheikh, Waqar Ahmad Sheikh, Khurram Riaz, Sohail Usman, Arif Siddiqui, Anjum Kamal, Amir Chhara, Furqan Arshad, Syed Riaz Ali, Suleim 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 smuggling
Faisal Khalil further said that the rate of customs duty was low till a few years ago due to which there was a significant reduction in smuggling but due to increase in taxes smuggling surged
Khalid Waheed told FPCCI President Mian Nasir Hayyat Magoo that the government has imposed 35% customs duty, 11% additional customs duty, 17% sales tax, 3% additional sales tax and 5.5% income on motorcycle spare parts importers.
Taxes have been levied and thus importers are carrying the burden of 85.5% duties and taxes
Faisal Khalil sought the help of FPCCI to agitate these issues so the the government should minimizing these taxes and duties in coming budget for the year 2021-22 to encourage legitimate imports of spare parts.
Member 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 smuggling Faisal Khalil further said that the rate of customs duty was low till a few years ago due to which there was a significant reduction in smuggling but due to the increase in customs duty the smuggling thrive .
He said that importers of motorcycle spare parts have been brought to the brink of disaster due to heavy duties.
He said continuous decline in tariffs poses a serious threat to the country’s economy. 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% duty and taxes are imposed on motorcycle spare parts,
heavy taxes on motorcycle spare parts should be abolished as motorcycle is not a luxury item but a ride of poor people.
Heavy duties and taxes on motorcycle spare parts is tantamount to putting salt on the wounds of the poor,
He said that Prime Minister Imran Khan always encourages legitimate importers ahe expressed hope that he would reduce duties and taxes on motorcycle spare parts to reduce smuggling these spare parts.
The increase in smuggling is tantamount to harming Prime Minister Imran Khan’s efforts to stabilize the country’s economy.