December 08, 2006	Friday	Ziqa'ad 16, 1427

LAHORE, Dec 7: The Pakistan Association of Automotive Parts and Accessories Manufacturers (PAAPAM) has criticised government decision to allow duty-free import of controversial Black Cabs in the name of “purpose-built taxis and passenger buses.”

A PAAPAM spokesman said on Thursday that this unilateral decision of the ECC would destroy local automobile industry, and all the stakeholders were not taken into confidence.

“The local market is already flooded with second-hand and used cars, and their import was allowed to bridge the so-called gap in the demand and supply of cars. Moreover, the import of used/new tractors at zero percentage rate of duty as allowed by the government is also having a negative impact on local industry.”

He said the automobile industry, which has shown phenomenal growth during the past few years, would suffer because of government’s inconsistent policies.

“The newly introduced tariff-based system (TBS) due to its non-transparent nature is already having an adverse impact. As a consequence of under-invoicing, the local assemblers of motorcycles have curtailed their production. They have reduced placing orders with vendors, and most of these units are at the verge of closures,” he said.

The spokesman said on the one hand the government plans to enhance local production of cars and LCVs from the present 200,00 units to 500,00 per annum, increase direct employment from 192,000 to 250,000 persons by the year 2011-12 and on the other hand such decisions were being taken.

Furthermore, the import of the black cabs and buses shall substantially contribute to enhancing trade gap, which is already touching highest-ever in the history of the country.

The spokesman urged upon the government to revoke its decision to allow duty-free import of the taxies and buses and demanded that an equal level field may be provided to the existing players.