Tyre-makers back increase in duty on imports
Believe it will shield the domestic industry, stimulate investment
PHOTO: REUTERS
LAHORE:
Pakistan’s leading tyre manufacturers have welcomed the increase in regulatory duty on imports of different categories of tyres, believing the move will shield the domestic industry from the onslaught of imports.
“It is a prime responsibility of the government to protect its domestic industry and encourage it to increase investment and save millions of dollars for the country,” said an industry executive.
He added that they believed that the higher regulatory duty would help domestic industries flourish as well as support the government in generating adequate revenues.
FBR uses commerce ministry’s shoulders to impose duties
Over the past five years, imports have gone up 35% from 4 million to 5.4 million tyres. More than 500 sizes of tyres are being imported whereas General Tyre produces 40 of these tyre sizes which constituted 75% of the tyres imported in 2016-17.
The rest of the tyre sizes are for Mercedes, BMW, Audi and 4x4 luxury vehicles. “In Pakistan, 20% of the tyre demand is met through domestic production, 55% through imports and the rest is smuggled,” the industry executive said. He was of the view that the reason behind the increase in imports was the current Import Trade Prices (ITPs) structure that did not reflect a true picture.
“We have been advocating for rationalising the ITP structure for so long. Our plea was well understood by the Customs authorities and ITPs were increased a year ago. But since then, no revision has taken place,” he said.
Oil tanker carrying 50,000-litre fuel overturns on National Highway
He decried that the domestic industry, despite paying taxes to the government, providing employment and saving foreign exchange, was still operating in difficult conditions, struggling against massive under-invoicing as well as smuggling. “Unless and until the government takes some stern and sincere action, the menace will persist and the tyre industry will continue to suffer badly,” the executive remarked.
Furthermore, he added, if the Federal Board of Revenue increased the ITPs - the price structure on which duties and taxes are calculated - they could cover the shortfall in revenues.
Published in The Express Tribune, November 24th, 2017.
Pakistan’s leading tyre manufacturers have welcomed the increase in regulatory duty on imports of different categories of tyres, believing the move will shield the domestic industry from the onslaught of imports.
“It is a prime responsibility of the government to protect its domestic industry and encourage it to increase investment and save millions of dollars for the country,” said an industry executive.
He added that they believed that the higher regulatory duty would help domestic industries flourish as well as support the government in generating adequate revenues.
FBR uses commerce ministry’s shoulders to impose duties
Over the past five years, imports have gone up 35% from 4 million to 5.4 million tyres. More than 500 sizes of tyres are being imported whereas General Tyre produces 40 of these tyre sizes which constituted 75% of the tyres imported in 2016-17.
The rest of the tyre sizes are for Mercedes, BMW, Audi and 4x4 luxury vehicles. “In Pakistan, 20% of the tyre demand is met through domestic production, 55% through imports and the rest is smuggled,” the industry executive said. He was of the view that the reason behind the increase in imports was the current Import Trade Prices (ITPs) structure that did not reflect a true picture.
“We have been advocating for rationalising the ITP structure for so long. Our plea was well understood by the Customs authorities and ITPs were increased a year ago. But since then, no revision has taken place,” he said.
Oil tanker carrying 50,000-litre fuel overturns on National Highway
He decried that the domestic industry, despite paying taxes to the government, providing employment and saving foreign exchange, was still operating in difficult conditions, struggling against massive under-invoicing as well as smuggling. “Unless and until the government takes some stern and sincere action, the menace will persist and the tyre industry will continue to suffer badly,” the executive remarked.
Furthermore, he added, if the Federal Board of Revenue increased the ITPs - the price structure on which duties and taxes are calculated - they could cover the shortfall in revenues.
Published in The Express Tribune, November 24th, 2017.