ISLAMABAD: The Public Accounts Committee (PAC) on Tuesday recommended to the government to reduce import duties on used vehicles to discourage 14 local car assemblers from exploiting customers, will bring down prices and offer more choices to people.

The PAC passed the recommendation after its members observed that car assemblers were deliberately delaying deliveries and charging the general public extra, especially after their customers had deposited full payments.

“The fault lies with the government ministries concerned for not curbing the malpractice,” said PAC chairman, MNA Noor Alam Khan, adding that car assemblers should be barred from demanding extra charges after their customers had deposited full amount.

In order to curtail the menace of on-money and late delivery, Noor Alam Khan also directed the Ministry of Industries and Productions, to reduce the delivery period from 60 to 30 days. He also directed Secretary, ministry of Industries and Production Imdadullah Bosal, that car manufacturers should be called car assemblers. “They are importing every part and only assembling them locally,” Noor Alam Khan said.

The PAC met for briefings on delay in delivery of cars, taxes paid by car assemblers and to inquire about the amounts deposited by the general public in accounts of booking/purchases of vehicles.

Members raised various questions regarding how much money car assemblers earned from advance money deposited by their customers.

PML-N MNA, Dr Malik Mukhtar Ahmed, observed that car assemblers were deliberately operating at less than 50pc capacity. “There is obviously mafia at work. If car assemblers do not increase production to meet demand, we will move a resolution in the National Assembly to slash import duties on small, 660 CC to 1,300 CC cars,” Dr Malik Mukhtar said.

The PAC was informed that car assemblers had reimbursed Rs1.95 billion late delivery charges. While Honda Atlas had delayed 10, 241 cars, Hyundai Nishat Motors had 6, 724 late deliveries, Indus Motors 13, 630 late deliveries, and Lucky Motors Pakistan had made 3, 452 late deliveries between November 2021 and April 2022. However, Pak Suzuki Motors had made the highest number of late deliveries which stood at 33, 847.

The PAC took offence to claims by car assemblers that their delivery period ranged between two and four months. “Car assemblers take from one year to one and half years to deliver cars to their customers,” Noor Alam Khan said.

PAC asked Federal Board of Revenue, Ministry of Commerce and the Ministry of Industries, to revisit policies governing car assemblers and to revise import duties on small cars between 660 cc and 1, 300 cc.

Published in Dawn, October 19th, 2022