KARACHI, June 10: Chairman All Pakistan Motor Dealers Association (APMDA), H.M. Shahzad has termed the budgetary measure to cut import duty on 1,800cc and above cars as a disappointment.

The decision would only benefit the rich people whereas the medium class had been left to the mercy of local assemblers, he said.

In a letter to president Mir Zafarullah Khan Jamali and commerce minister, he said only one per cent of the car users use 1,800cc and above capacity cars. The government has overlooked majority of people. He also termed the cut of Rs2000-3000 in Suzuki cars as an eye-wash.

He urged the government to allow import of used cars to facilitate the common man to purchase a good car within their limited budget.

Our Staff Reporter adds from Lahore: Car manufacturers have expressed their dismay over the government’s decision to slash duty on import of automobiles of 1800cc or above engine capacity to 150pc from the previous 200 per cent in the budget for 2003-04.

A manufacturer who approached Dawn here on Tuesday described the proposal as contradictory to the government’s “stated policy” of promoting the local auto industry.

“The government decision is likely to force down the prices of some brands and models. But it will benefit only the affluent,” a senior executive of the company said.

He said a few days before the announcement of the budget 2003- 04, Dewan Farooq Motors had announced that “it would commence production of BMW in Pakistan by the end of 2005.”

“This announcement was seen as a big step forward. It was also being hoped that the production of the luxury cars in the country would help the local engineering and auto industry move ahead for some local vendors are already exporting the parts used in luxury cars like BMW and Mercedes,” the executive said.

Automobile industry saw a very high growth rate of 48pc during this fiscal year, spurring the large-scale manufacturing.

He said it would have been much better if the finance minister had continued with the existing duty structure for the “up-market luxury vehicles to encourage other manufacturers to look into the possibility of producing 1800cc and above vehicles locally.”