PkRevenue.com

Business News

FBR White

FBR urged to lower duty, tax on import of motorcycle spare parts

KARACHI: Khalid Waheed chairman All Pakistan Importers & Dealers Association appeal to the FBR to lower the custom duties and withdraw the addition custom duty on the commercial import of motorcycle’s spare parts.

He said on Commercial import of motorcycle spare parts, Custom Duty 35 percent, Addition Custom duty 11 percent  sales tax 17 percent Income tax 5.5 percent and finally GST  total impact of taxes becomes 93 percent at the import stage which makes the spare parts a super Luxury item to buy by the poor motorcyclist.

The trade is on the brink of collapse due to higher rate of duty &taxes at the import stage and rising share of smuggled spare parts throughout the country.

In the absence of proper transportation system in the country especially at Karachi where 50 percent commuting is by motorcycles by the poor to go to the their jobs every day, registered motorcycle are 15 million means 15 million poor people are paying y 93 percent tax on the maintenance of their motorcycle after buying the motorcycles on monthly installment FBR put heavy burden on them to recover 93 percent taxes such a huge taxes is un imaginable not even the Luxury items can match with it.

The demand of aftermarket Motorcycle parts could not met by only local SMEs due to low production and Auto vendor Industry supply to only assembler as 2.5 million motorcycle are being assembled annually and the gap in the market is fulfilled 60 percent by smuggled parts due to lower prices as compare with imported parts instead of legitimate imported parts which is just 40 percent though custom due to higher duties and taxes.

Chairman Khalid Waheed request the FBR to lower the custom duty and abolish the additional duty on the import of commercial importer of motorcycle’s spare parts and relief should be given to the poor class

Higher Custom duties are not creating balance between Industry and consumer welfare. Tariff should be rationalized which should support the buying power of the poor masses. Lowering the custom duties can eliminate the smuggling and increased custom revenue. More importers can be registered with sales tax and income tax and documented economy will be flourishing.