APMSPIDA Seeks Reduction in Import Duty

All Pakistan Motorcycle Spare Parts Importers and Dealers Association (APMSPIDA) Vice-Chairman Nassir Mehboob on Mar. 30, 2012 urged the government to reduce import duty on spare parts in the next budget to curb its smuggling and mis-declaration.

He said that at present importers were paying huge amount in terms of duties and taxes on import of spare parts, which he added was responsible for increase in smuggling of the items.

He was of the view that reduction in the import duty would encourage genuine importers thus curbing smuggling of spare parts.

He noted that the government was generating huge revenue from legal import of spare parts in the past, however after the rise in import duty, its smuggling witnessed huge increase resulting in losses to the national exchequer.

Former Chairman APMSPIDA Arshad Islam was also of the view that mis-declaration would increase if government failed to reduce import duty and taxes on import of spare parts of motorcycles and cars.

He regretted that the genuine importers were paying around 70 percent duties and taxes on import of spare parts whereas the smugglers were paying about 10 percent only.

He proposed the government to reduce import duty from 35 percent to 10 percent in the next budget.

He was optimistic that reduction in the duty would eliminate smuggling of spare parts.