KARACHI: Government reduces age limit of used cars’ imports from 5 years to 4

Importers and dealers of used cars have blamed local automobile industry for spreading propaganda against them to reduce the depreciation limit up to four years.
All Pakistan Motor Dealers Association (APMDA) has sent a letter to the prime minister in response to recent government action, demanding to revert back the decision and allow the imports of up to five-year-old used cars.
With reducing the age limit, the imports of cars will be slowed down sharply and the prices of available cars will be increased by Rs 60,000 to Rs 260,000 on models from 600cc to 1800cc.
The government will not receive the amount of tax generation, which it had achieved in the last financial year of about Rs 33 billion. Besides, the dealers business will be hit hard with the decision and the jobs of dozens of people are now at stake, it said.
In the financial year 2011-12, the used cars imports increased to 55,703 units as against 16,000 in its previous year.
In July, the sales of local cars were down by 45 percent whereas the used cars imports were up by 7.0 percent.
The association alleged the local automobile companies for spreading disinformation in the press to cause the government for taking action against the imported cars sector, which will ultimately deprive the customer of the opportunity to buy affordable cars, the letter stated.
APMDA Chairman H M Shahzad said that the local automobile makers do not produce cars of international standard; neither had they let the customers buy high-quality cars of their own will.
The local automobile makers failed to maintain cars of high standard besides they keep own money of their customers illegally for a long period in the name of advance booking, he added.
He alleged that local automobile companies frequently hike the prices of cars without any check despite the fact their cars are not equipped with security and multiple necessary gadgets.
Shahzad alleged that local automobile companies have lobbied effectively to change the mind of government officials ahead of the announcement of trade policy, which was expected to be more relaxed for cars’ imports.
He added that local automobile companies are behind the decision of the government, which has been spreading disinformation in the press about the imported cars. Daily Times