Yamaha seeks relief in import duty on parts
Ministry rejects proposal, saying duty has already been cut.
ISLAMABAD:
Yamaha, which has planned to set up a motorcycle manufacturing plant in Pakistan, has said it is bringing new technology and needs a relief in duty on import of motorcycle parts.
The issue was raised in a meeting between a two-member delegation of Yamaha Japan and Federal Secretary for Industries Aziz Ahmed Bilour here on Thursday.
Presenting its proposals, the delegation said Yamaha being a new entrant needed some additional benefits to survive in the competitive market of Pakistan. It asked that the motorcycle manufacturer should be allowed import of parts at a reduced duty of 5%.
The Ministry of Industries, however, did not agree to the demand, arguing that import duty had already been brought down from 15% to 10%, which is acceptable to all players of the industry.
The ministry agreed that this subject fell exclusively under its purview and no other ministry had control over it.
Industries Secretary Aziz Ahmed Bilour said the ministry was keen to attract new investors to the country, but not at the cost of existing industry. The ministry would take every possible measure to safeguard the interest of motorcycle and vendor industry, which employs thousands of workers, he said.
Bilour asked the delegation to come up with new proposals and refrain from hampering the interest of domestic manufacturers.
Published in The Express Tribune, June 15th, 2012.
Yamaha, which has planned to set up a motorcycle manufacturing plant in Pakistan, has said it is bringing new technology and needs a relief in duty on import of motorcycle parts.
The issue was raised in a meeting between a two-member delegation of Yamaha Japan and Federal Secretary for Industries Aziz Ahmed Bilour here on Thursday.
Presenting its proposals, the delegation said Yamaha being a new entrant needed some additional benefits to survive in the competitive market of Pakistan. It asked that the motorcycle manufacturer should be allowed import of parts at a reduced duty of 5%.
The Ministry of Industries, however, did not agree to the demand, arguing that import duty had already been brought down from 15% to 10%, which is acceptable to all players of the industry.
The ministry agreed that this subject fell exclusively under its purview and no other ministry had control over it.
Industries Secretary Aziz Ahmed Bilour said the ministry was keen to attract new investors to the country, but not at the cost of existing industry. The ministry would take every possible measure to safeguard the interest of motorcycle and vendor industry, which employs thousands of workers, he said.
Bilour asked the delegation to come up with new proposals and refrain from hampering the interest of domestic manufacturers.
Published in The Express Tribune, June 15th, 2012.