KARACHI, March 18: The local heavy vehicle industry is now confronting with problems with increased imports of used buses under various schemes. The problems would be further aggravated following reports that the government is planning to allow import of used trucks on reduced tariff to modernize the truck industry.
Representatives of Hinopak Motors Limited, Ghandhara Industries Limited, Ghandara Nissan and Master Motor Corporation had met Chairman Central Board of Revenue (CBR), Abdullah Yousuf on March 15, in Islamabad to apprise him of the on-going and future development in the heavy vehicle sector.
They informed the CBR chief that a total of 825 used buses had already landed in Pakistan in 2005 alone only from Japan under the personal baggage, transfer of residence and gift schemes.
The vehicle industry representatives said that if the import of used buses via Dubai and Singapore are included then more than 1,000 buses, which is equivalent to total bus production of last three years, have arrived only in 2005.
They added that the import documents also verify that some of these used buses are of 1988 model and are as old as 20 years.
There is no rational for allowed import of used buses and trucks under various schemes since these vehicles are not imported for personal use and invariably go to the commercial market, the local manufacturers, seeking ban on the import of used buses. They felt that if the pace of import picks up in future, the local industry will collapse rendering thousands of workers jobless.
On the government’s move to allow import of used trucks, market sources said that the ministry of communication is reported to have projecting the idea to the government for allowing used trucks import on the plea that the local industry’s production is insufficient to cope up with the rising demand.
Sources said that ministry of industry and the Engineering Development Board (EDB) were reported to have opposed the move.
On this issue, the manufacturers informed the CBR chairman that the prime movers and the multi- axle vehicles were being manufactured within the country and the local industry had the capacity to meet any number of demands for prime movers. But in fact the demand for such vehicles has been slow in the country.
They said that the truck market has just started to grow. If the import of used trucks are allowed or any reduction in completely built up (CBU) rate of duty for prime movers are provided – the local investors and manufacturers, the vendor industry and large number of workers would be adversely affected.
They urged the CBR chairman not to allow import of used trucks and also not to reduce rate of duty on CBU of the prime movers. If at all, any reduction in CBU rate of duty is envisaged, the existing duty differential between the completely knocked down (CKD) kits and 20 per cent duty on CBU should be invariably maintained.
Abdullah Yousuf, after hearing the grievances of the industry, assured the manufacturers that he would look into the matter and try to resolve the issues threatening the industry.
The sale of buses in July-Feb 2005-06 stood at 581 units while truck sales in the same period were 2,791 units.
