KARACHI: The Engineering Development Board (EDB) discussed the joint budget proposal 2012/13 of motorcycle makers and vendors received through the Pakistan Automotive Manufacturers Association (PAMA) and Pakistan Association of Automobile Parts & Accessories Manufacturers (PAPAAM) in a meeting on Friday.
They have urged the government to rationalise tariff in order to bring down the cost of products and also allow the import of machinery, parts and moulds at zero duty, industry sources said.
The proposal demanded lowering import duty on the completely knocked down kits (CKD) to 10 percent from 15 percent, reducing import duty on completely built units (CBU) to 55 from 65 percent, on sub-assembly to 10 percent from 20 percent and reducing duty on components to 7.5 percent from 10, sources said.
The assemblers said that the improper implementation of SRO 656 was giving unfair advantage to unorganised sector in the two/three wheeler sector of the auto industry.
They also demanded that the components attracting lower rates of duty than CKD rate should be allowed at statutory rates.
The budget proposals suggested zero import duty on components needed for assembling two and three wheelers as per the Euro II standards. After implementation of the Euro II standards as Pak II, the cost of vehicles has gone up.
They also suggested restoring issuance of income tax exemption certificate at import stage to manufacturers; one percent withholding tax on the proceeds of exported goods should be reduced to 0.5 percent as recommended by the Engineering Development Board (EDB) in the National Engineering & Exports Development Strategy (NEEDS) report in 2010.
Bike, rickshaw makers seek lower duties on imported parts - The News