LAHORE, June 21: The Lahore Chamber of Commerce and Industry and Pakistan Automobile parts Importers and Dealers Association on Monday demanded withdrawal of 10 per cent raise in import duty on automobile parts announced in the federal budget.

This demand was made by LCCI president Mian Anjum Nisar, PASPIDA chairman Safdar Butt and former president of Federation of Pakistan Chambers of Commerce and Industry Iftikhar Ali Malik while talking to newsmen here on Monday.

They described the increase in customs duty from 25 per cent to 35 per cent as totally unjustified because it was neither in the interest of the local automobile industry nor the importers.

They said the government should restore the old customs duty rate on parts as an increase in it would only encourage smuggling resulting in loss of revenue on the one hand and discourage the import on the other.

Raising of customs duty on auto parts would result in a cumulative increase of 65 per cent and provide a good incentive to smugglers, they said. The government should consider reduction in duty instead of encouraging smuggling.

They pointed out that the imports of auto parts like crown wheel and pinion, main and big end bearings, piston rings, transmission gear, crank shafts, oil seals, T-belts, fuel injection pumps and parts not being manufactured locally were already a fraction of the smuggled quantities.

Increase in customs duty would result in total discontinuation of imports. Former LCCI presidents Mian Muhammad Ashraf and Mohsin Bokhari and vice-president Mian Misbahur Rehman were also present on the occasion.