Karachi, Haji Fazal Kadir Khan Sherani, President Federation of Pakistan Chamber of Commerce and Industry (FPCCI) and Zakaria Usman, Chairman of FPCCI Working Group on Budget have urged Ali Arshad Hakeem, Chairman Federal Board of Revenue (FBR) to immediately withdraw the decision of reducing the depreciation limit to four years and allow the imports of five-year- old used car as per past practice.
They lamented FBR for taking the decision unilaterally in haste without prior consultation with the FPCCI or the concerned motor dealers association and giving sufficient time for its implementation as throughout the world at least a three month time period is given before implementation of such policy decisions.
They proposed that the decision be kept in abeyance for at least three months and in the meantime the concerned dealers associations be taken into confidence on the issue.
FPCCI Chief elaborated that reduction of the age limit from 5 year to 4 year would slash down sharply the pace of imports of used cars mainly due to increase in their prices by Rs.60,000 to Rs.260,000 on model from 600cc to 1800 cc respectively. He apprehended that the decision is taken to provide undue benefit to the local car manufacturing industry and disclosed that own money taken by the indigenous car manufacturers from their clients for a long period in the name of advance booking had been increased by Rs.1 lac to Rs.2 lac, due to which an increase of Rs.70,000 has been witnessed in the price of small cars.
He added that the decision would affect the public in general and the business community in particular, depriving them of their right of buying car at affordable and reasonable prices.
Zakariya Usman Chairman, FPCCI Working Group on Budget urged the FBR that the used vehicles imported prior to August 31, 2012 and lying at Japan ports for shipment or are in ships or lying at Karachi ports should be exempted from the enforcement of the decision.