KCCI chief for reduction in duty on import of bike parts
KCCI president says taxes has made motorcycle unaffordable for the poor public
KARACHI (Web Desk) – Karachi Chamber of Commerce and Industry President Muffasar Atta Malik, while expressing deep concerns over the “unnecessary and exorbitant taxes and duties imposed” on import of motorcycle spare parts, advised the Federal Board of Revenue to reduce taxes and duties with a view to discourage smuggling and provide relief to the general public.
In a statement, the KCCI president said that motorcycles are commonly used by the lower and poor segment of society only because of the affordability factor but the masses are being burdened due to high taxes and duties on motorcycle spare parts, which affect the cost of motorcycle spare parts by almost 85 percent.
He said that motorcycle spare parts are subjected to 35 percent custom duty, 11 percent additional duty, 17 percent sales tax, 6 percent income tax and 3 percent additional sales tax, which terribly raise the cost of these spare parts and make them unaffordable for the poor public. “Hence, the government has to review the entire situation and accordingly take steps to reduce these taxes and duties in order to provide some relief to the masses who are already suffering badly in the ongoing era of inflation”, he added.
He pointed out that the legal importers of motorcycle spare parts have limited their activities nowadays due to high taxes and duties, making these imported motorcycles spare parts uncompetitive in the local markets, particularly in a situation when these spare parts are widely being smuggled into the country.
He was of the opinion that the government will have to take stringent measures to effectively deal with widespread smuggling of motor cycle spare parts which would not only encourage legal imports but also the national exchequer from the grave losses because of widespread smuggling.
He hoped that FBR authorities would review the situation on priority basis and ensure some relief to this sector in the forthcoming budget which would be widely welcomed by relevant stakeholders and the public at large.
