The government has no plan to amend import policy of three-year old used cars following demand of local car manufacturers.

The local car manufacturers have been pressing the government to reduce the age of used cars so that their imports could be reduced.

At present, the prevalent policy, used vehicles are imported under the gift, baggage and transfer of residence schemes for the overseas Pakistanis who ship such vehicles individually.

Official said that government had recently made some changes in import policy of used vehicles under which the duty and taxes on all imported vehicles, whether new or used, would be paid in US Dollars. This step has been taken to ease pressure on foreign exchange reserves. However, some officials say that it would open door for the importers to launder money. He said that they would involve in over invoicing of imported cars to launder money abroad.

Officials said that local car manufacturers had been pressing the government to reduce the age of vehicles but government had no plan at present to reduce the age of used cars from three to two years. He said that government had recently made changes in import policy to pay in dollars and therefore it was not right time to amend policy further. Under new auto policy, several companies were working on setting up new plants in Pakistan. They had also demanded the government to amend policy to discourage import of used cars.

“Local Manufacturer had also demanded the government to amend policy to discourage import of used cars”

At present, three Japanese based car assemblers have monopoly in Pakistani market and they had recently increased prices of cars following devaluation of rupee against dollar. The PML-N government had introduced new auto policy and offered incentives to new entrants to break the monopoly of existing car players.

Via Newztodays