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FBR urged to address SRO issue

FBR urged to address SRO issue

KARACHI: The Pakistan Automotive Manufacturers Association (PAMA) has urged Federal Board of Revenue (FBR) to resolve the issue of SRO released in the light of Economic Coordination Committee’s (ECC) decision, which if not amended, will have severe consequences for consumers and industry as well.

The DG-PAMA, in a letter to the FBR chairman, said motorcycle industry cannot afford any cost increases as it is already working on very thin margins. The anomaly in question will have severe impact on prices of poor man’s vehicle, which under foreign exchange and other inputs pressure is already on the rise, he said.

The SRO in question was issued to provide protection to motorcycle industry in pursuance of the ECC decision which reads: “The Economic Co-ordination Committee of the Cabinet considered the summery dated 16 October 2012 submitted by Ministry of Commerce on ‘Protection to Motorcycle Industry in Pakistan’ and decided to reduce the tariff to the average of the existing rates and proposed rates [Column 3 & 6 of the table given in para 3 (a) of the summery] subject to the review after one year. The approved rates will be applicable across the board.”

However, the SRO issued depicted as if it is liable to change after one year, therefore the Customs authorities have started to charge increased rate of duty ie 15 percent instead of 10 percent on CKD imports.

In the aforesaid Notification, in the table, against serial No. 11 in column (1), against item (i) in column (3), in column (4), after the figure ’15 percent’ the words and figure ‘but 10 percent for motorcycles for a period of one year (shall be inserted).

DG-PAMA Abdul Waheed has asked Tariq Bajwa to look into a matter requiring his urgent intervention as the consignments are held up at the port on accounts that increased rate of duty is being called upon to be paid as the subject SRO has lapsed on November 30th 2013. It may be seen it was issued for a period of one year on November 30th 2012.