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Dealers increase used cars’ prices up to 14%
Karachi: Failing to checkmate the decision of used cars’ age limit cut by the government, the dealers have increased the prices of five year old imported used junk cars upto 14%, says a release of Pakistan Automobile Manufacturer Assemblers Dealers Association PAMADA.
According to the market survey of more than 10used car dealers including the auction price at Sohrab Goth during last two weeks,the used car dealers have increased theprice of Mira/Suzuki Kei up to Rs 55,000.
The price of Vitz/Passo has also been increased up to Rs 80,000; Axio’s price increased up to Rs 110,000;and Premio has a price increase of up to Rs 160,000.It is worth adding that these old used cars are already being sold at higher prices than locally made new cars.
‘This price increase in old used cars shows that the dealers don’t pay any heed on the concerns of the consumer and completely bent upon fleecing the consumer,’ said Iqbal Hussain Shah, Vice President, Pakistan Automobile Manufacturer Assemblers Dealers Association PAMADA.
He further said, “Interestingly All Pakistan Motor Dealers Association APMDA always portray themselves as one of the well wishers of Pakistani nation,seems quite busy in making profit from their imported used cars stocks/investment.This clarifies how much they love common man of Pakistan.”
What is more important to mention that local car prices are constant from last 6months and only Honda Civic price was revised due to new model launch with additional accessories and features. While US $ has touched new record, high and local car assemblers are absorbing most of the cost impact.
He said that the local auto sector of the country urges the government to consider the strengthening of Japan’s Yen againstUS dollar in the last few years and must revise used car duty slabs which were fixed in 2005.
Today, the disparity between Japan’s Yen and US dollar is much low. One US dollar was of 120 Japanese Yen in 2005,but since then the Yen has strengthened and now in November 2012 its value is 79against one US dollar.’This calls for a revision of used car duty slabs which were fixed in 2005,so that the consumer can know how they are being fleeced by the used cars dealer mafia,’ reasoned the official.
The local auto industry said that based on today’s value of the Yen, the proposed duty slabs for vehicles up to 800c is $6650 against the current fixed duty of $4400 on a used car which was fixed on the value of Yen in 2005.
Similarly, for vehicles of 80011000cc, the proposed duty is $8312 against the fixed current duty of $5500; for 10011300cc the proposed duty is $16625 against current fixed $11000; for 13011500cc the proposed duty is $23275against fixed current duty of $15400; for 15001600cc proposed duty slab is $28262 against fixed current duty $18700;and for 16011800cc the proposed slab is $26184 against the current fixed duty of $23100.
While commending the government on reducing the age limit of used cars,he said now the need is that government should focuson revising duty slabs in order to stop the losses of billions of rupees revenues on used cars imports.
Pakistan Customs did not revise the Import Trade Price ITP on the imported used cars,thus allowing dealers to import huge number of cars on the duty which had been significantly concessional rate for them.Consequently,the nonrevised and reduced duty on imported used cars caused huge inflows of cars in the local market at the expense of heavy losses to national exchequer.
He said it is high time for the government and nation to realize what is in the national interest.Further he appreciated government’s recent decision to cut down used car age limit from 5 to 3 years “this decision will work as a new lifeline for the local auto industry and new investment will come in from new and existing players.”