While expressing deep concerns over rising prices of locally made vehicles, the Pakistan Economy Watch (PEW) has urged the government to abolish protections for smashing powerful lobby of auto industry in a bid to reduce prices of vehicles.
In a statement issued here on Monday, Pakistan Economy Watch President Dr.Murtaza Mughal expressed dismay over government’s slow move to abolish protections extended to the auto industry in order to bring down the prices of locally madevehicles. He said the abolishment of protections extended to the auto industry was essential for smashing lobby of auto industry which was so powerful that even government appeared unable to make policy against their vested interests “Government should gradually reduce protection given to the auto industry by reducing the tariff on Completely Built Units (CBU) to ensure availability of imported substitutes for consumers at affordable prices,’ he said, adding that there was also need to rationalise tariffs applicable on Completely Knocked Down (CKD) units. He said the Engineering Development Board (EDB) has proposed a reduction in the tariff on cars up to 1,000cc engine size, from the current 55 per cent to 40 percent for the next five years; from 60 per cent, to 50 per cent for 1,001cc to 1,500cc cars; and a 5 percent increase in the tariff of 1,501cc to 2,000cc cars from the current 75 percent. He said the EDB has also proposed withdrawal of the 50 percent regulatory duty on cars
exceeding 1,800cc; which it
believes is an impediment to the growth of this segment.
