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TABLE 3.2: SRO 693 - LEVY OF ADDITIONAL DUTY ON AUTOMOTIVE SECTOR
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| TABLE 3.2: SRO 693 - LEVY OF ADDITIONAL DUTY ON AUTOMOTIVE SECTOR Sr. Nob bPCT Headings Rate of additional customs-duty (1) (2) (3) 1 87.01 (Agricultural Tractors) 35% ad val. 2 8701.2090 and 8701.9060 35% ad val. 3. 87.01 (Tractors other than mentioned at Sr. No and 2 above. 25% ad val. 4 87.02 (CNG dedicated buses) 35% ad val. 5 87.02 (Non-CNG buses) 30% ad val. 6 87.03 excluding stoke auto rickshaw of PCT heading ad val 8703.2115] 6 [6a 4-stroke auto rickshaw of PCT heading 8703.2115 30% ad val. 7 87.04 (vehicles of g.v.w exceeding 5 tons. 25% ad val. 8 87.04 (vehicles of g.v.w not exceeding 5 tons) 30% ad val. 9 87.11 32.5% ad val. Source: EDB (http://www.engineeringpakistan.com/EngPak1/Tariff%202011-12%20%28Chapter%201-97%29.pdf.) The system discriminates between licensed OEMs/Vendors and commercial importers. The former pay WHT at a 3 percent adjustable rate on CIF+CD value the latter pay anon- adjustable rate of 6 percent on CIF+CD+ST. Sales Tax in 19 percent in the case of the latter and 16 percent in the case of the former. Thus, the effective incidence of all taxes paid by the commercial importer is significantly higher. This encourages the licensed OEM/Vendors to 43 have the approved input-output ratios skewed in their favour. This could have grave consequences one, commercial imports are discouraged the small back-end assemblers and vendors cannot get access to the economies of scale prices obtained by the commercial importers the SME sector faces monopolistic prices set by the licensed players and encourage these also to takeover the commercial import market to the detriment of the SMEs, commercial importers and the general consuming public. Therefore, a level playing field should be provided, by removing the distinction between industrial and commercial importers. Download 0.77 Mb. Share with your friends:
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