Chapter 7 KEY ISSUES IN THE VENDING INDUSTRY This Chapter aims to answer some of the questions in the TOR of Phase II of the study, mentioned at the beginning of Chapter 6. These relate to the impact of tariff protection, extent of competition within the sector, level of competitiveness and potential for moving up the value chain. Finally, we discuss the policy measures suggested by the sample vendors which could promote attainment of the AIDP, especially with regard to the extent of deletion. 7.1. IMPACT OF TARIFF PROTECTION We have indicated in Table 4.1 that the rate of customs duty on non-local auto parts generally ranges from zero to 32.5 percent (as per SRO 656(1)/2006) for different types of vehicles. It is significantly higher at 35 to 50 percent on localised parts. According to Table 4.2, the rate of effective protection to vendors is fairly high, at upto 78 percent. The basic question is has the protection provided by the industry resulted in job creation and technology deepening We first look at the resultant level of employment in the vending industry.
