PAKISTAN’S auto-parts industry is severely affected and the country is losing valuable revenue due to various malpractices by importers of auto parts and smugglers who work in collusion with unscrupulous customs and tax officials.

Under the existing customs rules, auto parts classification is one of the major issues that affect auto-part imports since duty is calculated on the basis of weight rather than value.

This creates wide disparity in the valuation of imported parts and the net result is that local auto-parts manufacturers lose their competitiveness.

The government is also losing huge volumes in sales tax as a large number of auto-part wholesellers and retailers are unregistered and do not generate sales invoices.

This encourages open sales of smuggled and illegally-mported auto parts in the market, thus creating a clear disadvantage for locally produced or genuinely imported auto parts.

In most cases, auto parts of inferior quality are also imported through government.

We must strictly enforce Customs rules and stop the smuggling of auto parts to protect the local auto-parts industry and ensure the safety of automobile users.

SYED OVAIS AKHTAR Karachi

More From This Section

Pakistani dramas

IN almost every drama serial, I see a ‘baychari’ (deprived) woman who is often beaten up by her husband or one ...

White is black

A SALARIED private militia maintained by Nawab Akbar Bugti had killed 231 security personnel of our army, FC, police...

Living in fear

I REMEMBER going to see my grandparents in southern Punjab every summer holiday. Unlike many other schoolchildren, I...

CNG supply

THE government recently announced that there would now be a continuous supply to CNG stations in Punjab, with a...


Comments are closed.

Comments (2)

socrates
May 5, 2012 9:42 am
When local manufacturers start making parts that compete inquality with imported parts then the imports will stop. That is the natural order of things in the global economy.
Sandip
May 5, 2012 10:30 pm
Economics one on one. High local prize + low quality = smuggled goods
Explore: Indian elections 2014
Explore: Indian elections 2014
How much do you know about Indian Elections?
How much do you know about Indian Elections?
Cartoons
E-PAPER
Front Page