The used car importers have urged the government to commercialize the import of second-hand cars, in order to generate revenue and provide more choices to potential car buyers.
Used Car Importers Vs. S.R.O. 52(1)/2019
It is important to remind our readers that the import of used cars, especially 660 cc Japanese cars have been declining drastically for the past many months. An overwhelming majority (80%-90%) of used cars imported in Pakistan are of 660 cc to 1,000 cc engine displacement. PakWheels had reported in March 2019 that the import of second-hand vehicles had gone down by 74% in February 2019.
READ MORE: Import of used cars in Pakistan dips by 74 percent
The reason for this drastic decline has been attributed to the issuance of S.R.O. 52(1)/2019, wherein the government made it mandatory for car importers to pay the duty in the US Dollar.
The import of used cars is allowed under the following three schemes:
- Transfer of Residence (TR)
- Baggage
- Gift
Irrespective of the scheme, the import duty remains the same, which increases with the engine capacity of the vehicle.
The rationale behind the above mentioned S.R.O. seems to encourage new entrants, both assemblers and manufacturers in the local automobile industry at the expense of used car importers. However, the used car importers are of the view that used imported cars offer more to the local consumer in terms of specs and safety features as compared to locally assembled and manufactured vehicles.
It is in light of this that they want the government to commercialize their trade, which would benefit both the people and the government.
Stay with PakWheels for the latest on the automobile industry.
