APCDIA Chairman Advocates for Importing Used Vehicles

Used car dealers in Karachi are advocating for the government to permit the commercial import of cars up to 10 years old and SUVs up to 20 years old. They believe that this move would not only boost government revenues but also make vehicles more accessible to consumers at reasonable prices.

The All Pakistan Car Dealers and Importers Association (APCDIA) Chairman, Mian Shoaib Ahmed, proposed various strategies for importing used vehicles. One suggestion is to allow a limited annual import of $800 million worth of different types of used vehicles through banking channels. This, he argues, would curb foreign exchange outflows through unofficial channels and promote a transparent economy by ensuring that all transactions are conducted through the banking system.

Ahmed emphasized the importance of levying duties and taxes based on the depreciated invoice value of imported vehicles. He recommended a depreciation allowance of 2% per month of the Import Trade Price (ITP) value, starting from the vehicle's last registration month and year, with a maximum allowance of 60%.

Furthermore, the dealers expressed concerns about the overprotection of local car assemblers, which they believe has hindered technological advancements and localization of parts. They criticized local assemblers for heavily relying on imported parts despite receiving significant government incentives to promote local production.

In conclusion, the dealers highlighted the need for a more balanced approach that encourages innovation and cost-efficiency in the local automotive industry. They believe that reducing protectionism and promoting local manufacturing could lead to the production of high-quality, fuel-efficient vehicles that benefit both consumers and the economy.