ISLAMABAD: The Central Board of Revenue (CBR) is considering reducing customs duty from 90 percent to around 50 percent on the import of motorcycles in the forthcoming budget, a government official told Daily Times on Saturday. If incorporated in the budget, it will benefit the middle and lower middle class which mainly uses motorbikes.
The official said that the step would help reduce the prices of motorbikes which being sold at Rs 48,000 to Rs 65,000 in the local market. “The local bike manufacturers will be compelled to reduce their prices to keep them on level with the prices of imported motorcycles,” he said.
The Engineering Development Board (EDB), a consumer advocacy group, has opposed the proposal. The EDB suggested tax authorities that a reduction in duty would flood the local market with imported bikes from neighbouring countries. “Pakistan’s market is already flooded with Chinese bikes which are cheaper than the local ones.
If import duty is reduced, Iran might also invade Pakistan’s market, destroying the local industry,” the EDB added. “The prices of imported motorcycles even after payment of all taxes and duties will be far less than the local ones, adversely affecting the local manufacturers who have made huge investments in the industry,” the board said. staff report
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