Some quarters believe that the import of used cars is the answer to providing affordable cars for local consumers. They also seem to suffer from the misconception that this will create an environment of healthy competition and will ensure a steady supply of quality and reasonably priced cars to the local market.
On the other end, the government has still not recovered from the embarrassment of allowing import of five year old cars in order to provide cheaper vehicles to consumers despite the fact that most of these vehicles are priced at the rates of locally made new cars. It appears the tax-evading mafia lobby is at its dirty tricks again and has mustered the courage to further enhance the government’s embarrassment by demanding additional relaxation on commercial import of used cars of up to 10 years old which could prove suicidal for Pakistan’s already precarious economy.
The used cars dealers lobby propounds the faulty theory that the import of used vehicles would be beneficial for the government as it will expand the tax net and add to the tax base. It is unfortunate that this lobby ignores the fact that such an approach to fiscal policy would fatally harm the local auto industry and cause huge dent in the national economy.
These short-sighted elements are also of the view that commercial import of used cars of up to 10 years age would generate revenue for the national exchequer. They ignore the tremendous manner in which such a move would upset auto parts vendors and car makers.
In reality the local auto industry has been greatly beneficial for the local economy – a fact that cannot be over-emphasiszed. The importance of the local auto industry can be gauged from the contributions that the auto sector has made to the national economy, which amounted to more Rs60 billion during 2010-11 whereas passenger cars and the LCV sector contributed Rs40 billion during 2010-11 out of a total FBR collection of Rs 1,558 billion.
It needs to be understood very clearly that import of used cars will cause immense damage to the local industry and will also result in depletion of valuable foreign exchange through dumping of junk cars in the country. The signs of revenue loss are already visible as the Government of Pakistan has lost almost 715 million rupees between January and October, 2011, by allowing used car imports compared to what it could have earned in shape of dutys and taxes from local CKD car sales. The local car market in Pakistan is flooded with imported used cars and their prices are extremely high compared to their age. The alarming increase in the import of used cars is expected to reach around 20,000 units by the end of this year. The majority of imported used cars are in the 1300 cc range and above, which clearly falls in the luxury segment. Out of the 16, 620 used cars imported so far this year, 55 per cent% were in the 1300cc and above luxury cars category, 38 per cent in the 1000 cc cars segment and a mere seven per cent in the 800cc cars segment.
According to media reports, PAMA officials have stated that mostly luxury cars are being imported under the used cars import facility which is depriving the government of valuable foreign exchange. The payments for used cars are made through illegal channels commonly known as “Hawala” in the market which makes it difficult for State Bank to even track this money laundering. The government definitely has all the information in this regard and should have reprimanded the dealers who had earlier assured that the prices of used cars would be much lower so that ordinary consumers would benefit from the facility. Allowing commercial import of used vehicles is not only unfair to the unfortunate consumer but is detrimental to the local auto industry, which has invested millions of rupees over the past decade and has been a source of gainful direct and indirect employment for millions of people.
The writer is a media
and marketing professional
Local car manufacturers have failed completely to provide good car at afordable prices.They had monopoly and increased prices 250% in last four years while rupee has devalued 40% only in last four years.Dont import used car and then see that u will get a suzuki mehran even at 20 lak as there will be only monpoly and their wish to increase as much price as they like. Similarly imported cars pay huge tax above 10000 dollars on each car to government kitty.thanks
I agreed with shoaib khan afridi local manufacturers are make low quality cars and selling on higher side. further they dont have stocks and some time taking months to deliver as well their brokers are taking EXTRA MONY as OWN for delivery on time.
Imported cares are used but excelent in condition long life and you can feel you ahve paid for right thing. No one is wriging on this issue…..
completely agreed with both the gentlemen. i would add further that officials at our government have the stakes in the local automobile manufacturing companies. Such companies have been found guilty in offering huge amount of bribes to Govt officials to hold a ban on import of used cars. They monopolized the situation and charged the price whatever they want. For the sake of discussion, if we honor the opinion of AMC, where the huge amount of illegal premium and long queue of consumer waiting for their desired vehicles would stand in the whole episode. For God sake, don’t squeeze the people of Pakistan even more. If Govt / supporter of such ban are this much kind to the people around. Please go for the price cut instead of imposing a ban on import so that a better mean of transportation can be provided to the masses. Further, imported used cars would bridge the gap of demand and supply of vehicles.
this is more of a job security article 🙂 author is afraid of loosing his job/business. Fact is that local manufacturers are selling a trash like mehran in 6 lac pakistani rupees, while in India you can get a hyundai i10, suzuki cervo or maruti suzuki in less than this price (3 lac Indian rupees about 5 lac Pakistani) and they are light years ahead of alto, mehran, cuore we have got at double price (cuore is 9 lac pakistani).
its high time for local companies to stop bribing government officials and start doing fair business. Instead of ripping people off their money.
the local companies are fleecing tthe consumers. take the example of Suzuki Cultus. is this car worth its price. can one imagine a car in 2012 to be without power steering and powers winddows , but still price is more than 9 laks. given the quality, its price should not be more than 6 laks at the most. on the ohter hand, see Vitz or budget vehicle passo.
Buying new cars can be both a daunting and exciting experience, and is one of the most important investments of our life. Having your own car will undoubtedly allow you more freedom, but the sheer variety of different car models ranges and manufacturers can be overwhelming. Here are some tips for first time buyers for things they should look for or be aware when buying a car.
If you have decided to buy a used car then it’s a smart decision as it can save your money. The first thing to remember is that you should choose the cars that are in your budget. If you decide according to the money you can spend on buying a used car then you will end up with a satisfied deal. Never forget to include registration, insurance and regular maintenance as well as the other costs on the used car.
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Really it is a well managed blog and give a brief idea how to sell a used car. It is right that when we are going to sell a car we should remember minimum two or three weighted point to motivate the front one.
When someone go for buy a used car it depends on the above points and it is preferable for a middle class family. It has no financial confusion.
It is good for car buyers and help to facilitate the car business by giving a new benchmark to the automobile sector. One step and it is the final process of a car business. By a car grocery shop one can choose the best one according to his/her needs.
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completely agreed with both the gentlemen. i would add further that officials at our government have the stakes in the local automobile manufacturing companies. Such companies have been found guilty in offering huge amount of bribes to Govt officials to hold a ban on import of used cars. They monopolized the situation and charged the price whatever they want. For the sake of discussion, if we honor the opinion of AMC, where the huge amount of illegal premium and long queue of consumer waiting for their desired vehicles would stand in the whole episode. For God sake, don’t squeeze the people of Pakistan even more. If Govt / supporter of such ban are this much kind to the people around. Please go for the price cut instead of imposing a ban on import so that a better mean of transportation can be provided to the masses. Further, imported used cars would bridge the gap of demand and supply of vehicles.
Cars have become a very important part of our life. Nowadays, cars have moved away from being just a mode of transportation, and gained major significance in our lives.
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Used cars are not bad as we have an imagination that the old cars are bad. If a person maintains his/her car whether the car is old it will provide good service. So for us to take more benefit from our car we have to maintain our car otherwise we have to face a number of problems and have to pay a huge amount of money to repair center to repair our car. So if we maintain our car the small issues of car will not occur and if some problem beyond our capacity arises then we have to repair it from good Mercedes Service Culver City centers that charge reasonable price and provide good services for our vehicles smoother running and better performance. .
Autos have grown to be an essential a part of our lifetime. These days, autos include migrated from currently being only a manner connected with travelling, and also obtained main meaning in our existence.
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I couldn’t see any problem with import cars. Also used car is much better than new cars. Cheap yet still a good quality. Also, there are lots of people who wanted to have a car but couldn’t afford the prices of locally made new car. So what’s their option? To buy a second hand car.
“Some quarters believe that the import of used cars is the answer to providing affordable cars for local consumers.” And who wouldn’t believe? I agree with this. If only car manufacturers could manufacture a car that is cheaper and a consumer could afford. But since this is sounds impossible, those imported used cars are the only solutions for some consumers to own a car.
This blog is news of car crash. As it is genuine, it is not a issue but destroyed of lives due to an accident is a sad news. Basically the car accidents occur by us due to our careless
very interesting topic. I really enjoi read. thank you for sharing
It’s too bad that government of Pakistan is suffering from such a shame in addition to all the issues at hand. Their initiative to help people to get affordable cars has only became a nightmare for all except for the tax-evading mafia lobby.
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I feel sorry for the Pakistan government who has been facing back top back criticism for their failed attempts to help their people. Their initiative to help people to get affordable cars has only became a nightmare for all except for the tax-evading mafia lobby. clipping path company
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