Auto parts segment calls for tariff reduction


KARACHI:

Importers of auto parts have called on the government to reduce tariffs on auto parts to reduce the risk of smuggling.

“After taking into account all the charges, the cumulative duties on importing auto parts reach almost 90%,” said Muhammad Ahsan, president of the Pakistan Association of Auto Parts Importers and Dealers (PASPIDA). , during his visit to the Karachi Chamber of Commerce and Industry (KCCI) on Monday.

Calling on the government to rationalize the tariff structure on auto parts, he pointed out that the high tariffs have encouraged equipment smuggling, which has made it difficult for registered and legitimate companies to compete in the market.

Speaking on the occasion, PASPIDA chief boss Arshad Islam said that while locating auto parts is vital, domestic companies have yet to achieve the capacity to meet the needs of the entire country. Pakistani market.

Many older models are no longer produced by original equipment manufacturers, so the auto industry is forced to import them, he noted.

Islam expressed concern about the high rates of taxes and tariffs imposed on the importation of auto parts.

Karachi Chamber of Commerce and Industry (KCCI) chairman Muhammad Idrees called the two officials’ demand genuine and called for a reduction in tariffs on auto parts.

Read Growth of the automotive sector linked to “Make in Pakistan”

“Managing businesses has become quite difficult due to unstable exchange rates, gas, electricity and water crises, complexities with customs and taxation, and rising inflation. “, did he declare. “The government should take the pressure off the business world. ”

Talk to L’Express TribuneArsalan Hanif, analyst at Arif Habib Limited, stressed that executives should heed the demand from auto parts makers if they were to steer localization in the auto industry and deter smuggling.

“The reduction in tariffs will make local cars cheaper in addition to generating jobs,” he said, noting that the survival of auto parts manufacturers was becoming difficult day by day due to the surge in inflation associated with currency depreciation.

These two factors, he said, had made local businesses uncompetitive with businesses that sold imported parts.

As a result, local original equipment manufacturers have used imported auto parts as they cost less, but on the other hand, increased imports are putting pressure on the external account, he said. -he declares.

Posted in The Express Tribune, November 30e, 2021.

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