Even smaller cars would create more traffic congestions as compared to motorcycles.
KARACHI: All over the civilised world, governments reduce traffic congestion by discouraging private cars’ entry into cities by various means, such as punitive parking charges etc, so as to improve and encourage the use of public transport instead. However, our leaders, who are a unique breed, seem to be thinking of reducing custom duties and other taxes on the import of private motor cars, especially those with an engine capacity of up to 700cc. The idea, among other things, is to encourage motorcycle riders to switch over to small cars. The Federal Board of Revenue (FBR) is happy, thinking that even with the reduced rate of custom duty, the overall revenue generation would rise because of a phenomenal increase in the number of vehicles imported.
Needless to say, even smaller cars would create more traffic congestions as compared to motorcycles and can cause a bigger drain on foreign exchange because of their import price which has to be paid in foreign currency. This is, of course, in comparison with motorcycles which are mostly locally manufactured. The argument that a small car will carry more passengers is not applicable in Pakistani context where even motorcycles are seen to carry just as many people.
There are reports that plans are afoot to reduce duty and other charges on the import of motor vehicles with above 1,500cc engine capacity, for which there seems to be no justification. Such policies, formulated and implemented for a few years, and which affect different sectors, some adversely, need to be discussed thoroughly in parliament and in concerned circles. However, in our case, legislators are normally found to be crying themselves hoarse on non-issues, whereas policies are prepared by those with vested interests. In this case, groups with vested interests are car dealers and importers in this case, who ‘enact’ their suggested policies using their ‘connections’ with important officials. No wonder we are in the state that we are in.
SRH Hashmi
Published in The Express Tribune, May 3rd, 2014.
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