The Auto Traders and Importers Association on Thursday reacted to the end of the 20% regulatory duty on used imported cars in Pakistan.
Senior Vice President Syed Amir Ali has stated that the end of this duty will not have a significant impact on the prices of used imported cars.
According to Amir, the regulatory duty was imposed six months ago, and the prices of used cars have already increased due to it. Therefore, the end of the duty will not cause a significant reduction in prices, as there is no such thing as prices going back to their previous levels.
Furthermore, Amir notes that the price of 1500cc cars had become so high a year ago that people were unable to buy them. The end of the regulatory duty will not make much of a difference in their prices either.
Although the dollar has increased in value, Amir believes it will not make a significant difference in the price of cars. He notes that the end of the regulatory duty will not cause cars to become much cheaper. It is incorrect to say that cars will become much cheaper because of the reduction in regulatory duty.
The senior vice president of the Auto Traders and Importers Association emphasizes that the prices of used cars are not solely determined by regulatory duties. Other factors such as the exchange rate, supply and demand, and market conditions also play a significant role in determining prices.
Amir’s comments highlight the complex nature of the used car market and the challenges that importers and traders face in predicting future prices. While the end of the regulatory duty may not result in a significant reduction in prices, it is still a positive development for the used car industry in Pakistan.
In conclusion, the end of the regulatory duty on used imported cars is unlikely to cause a significant reduction in prices, according to the Auto Traders and Importers Association. While this may disappoint some buyers hoping for cheaper cars, it is essential to consider the multiple factors that determine prices. Nonetheless, the end of the duty is a positive step for the industry, and it remains to be seen how it will impact the used car market in Pakistan in the long run.
