Auto anguish reaches Senate.

The Senate Standing Committee on IndAusAAtries and Production on Tuesday decried the Federal Board of Revenue (FBR) for not considering the fallout of cheap auto spare parts imports.

Briefing the committee meeting, which was chaired by Senator Ahmed Ali, representatives of Pakistan Association of Automotive Parts and Accessories Manufacturers (Paapam) said the lopsided government policies were discouraging local light engineering sector.

'We are making spare parts and accessories for cars and each part has to clear quality testing from Japan. However, we should consider the fact that parts made by us are not available in the local markets,' said Amir Allahwala, a senior member of Papaam.

He blamed ambiguities in the import regime as a reason. Commercial spare parts are imported at low duties by under-invoicing, while a large number of spare parts are imported as scrap metals and the duties are levied on them by weight, he explained. 'But on the other hand we pay up to 33 per cent duties and taxes. Either the government should reduce duties on locally manufactured parts or raise duties on the imported parts,' he added.

Spare parts manufacturers point out large duty differentials with importers

The Paapam members said there are around 19pc duties on tractor parts, and at the same time the total duties on a tractor were 5pc as government wants to support the agriculture sector.

Senators Ahmed Khan and Sitara Ayaz asked about used spare parts usually...