Drastic drop in the imports of used cars in Pakistan
ISLAMABAD- The total number of old and used cars imported in Pakistan has drastically decreased to 10,432 during 2019-20 as compared to 46,000 during 2015-16, reflecting a decrease of 77.32% or 35,568 vehicles during the last four fiscal years.
This data, available with ProPakistani has been shared by the Secretary Auto Industry Development Committee (AIDC) of the Engineering Development Board (EDB) during the recent meeting of the committee, presided over by the Chief Executive Officer (CEO) EDB.
During the meeting, the senior manager of Indus Motor Company highlighted that month by month imports of used cars are increasing in the country.
Secretary AIDC highlighted that year on year imports have reduced from almost 46,000 in 2015-16 to 10,432 in 2019-20.
CEO EDB emphasized that industry should improve situation for availability of cars, reduce prices and consumer rights should be protected, sources quoted him as saying during the last meeting of the AIDC of the EDB.
Senior FBR officials told ProPakistan that the Federal Board of Revenue (FBR) has suffered massive revenue loss from low tax collection on the import of old and used vehicles during (2019-20) due to a change in import policy for secondhand cars.
According to a document of the FBR on factors responsible for affecting revenue collection during 2019-20, change in the import policy for used vehicles negatively impacted the FBR revenue by Rs. 22 billion (all taxes at the import stage) during July-January (2019-20) due to a change in import policy for secondhand cars.