ISLAMABAD: The import of used vehicles in the first four months of this year has resulted in an estimated loss of more than Rs 12 billion to the national exchequer in terms of duties and taxes, that too only for vehicle less than 1,800cc, said Pakistan Automobile Assemblers Dealers Association (PAMADA) Vice Chairman Iqbal Shah. “As per the data of customs, 18,664 units of all segments were imported in Jan-Apr 2016 while the number of imports was 12,401 in Jan-Apr 2015, showing an increase of 51 percent,” he added. He said the import of used cars of different segments in January to April this year has almost doubled as compared to the imports in the same period last year, creating huge losses for local auto and vendor industries besides inflicting huge loss in duties to the national exchequer. He stated that the local auto industry has been questioning since long the rationale behind the import of used cars at a time when the government is striving to attract foreign investors. “The policymakers are working at cross purpose as on one hand the government envisions global car makers to enter the Pakistani market and on the other hand liberal import of used cars is allowed,” said Iqbal. According to the data, 3,394 units of economy segment vehicles were imported in Jan-Apr 2016 against the 1,902 units imported in Jan-Apr 2015. Similarly, 6,666 units of small low-segment were imported in Jan-Apr 2016 against 4,541 units in the same period last year, while 2,251 units of high-segment vehicles were imported in Jan-Apr 2016 against 1,247 units in the same period last year. The imports of van, minivan, pick-ups saw huge increase in the said period. A total of 4,869 units of the said segment were imported in Jan-Apr 2016 against 2,997 units’ import in the said period of last year. Iqbal Shah said that this heavy import of used car, being done through exploiting baggage and gift schemes, is denting the local industry and national exchequer. “The government would never attract global car makers like Fiat or Volkswagon in the presence of this damaging policy. This is why we haven’t heard any concrete news of any new player entering the market despite announcement of new-entrant favouring auto policy a few months back,” Iqbal added. He said illegal trade is going on rampantly under the guise of providing small segment cars, which is giving maximum benefits to traders who charge hefty profit on imported cars, whereas the consumers of used cars suffer due to the higher prices, non availability of spares parts, unavailability of after sales service, and technical support. “No country with domestic auto industry allows import of used cars, in fact they discourage it by using all sorts of tariff and non-tariff barriers. Japan and South Korea are two big auto-producing nations that have almost negligible imports. All industrialised nations like Korea, India, and Thailand protect their local industries by discouraging imports,” he added. Iqbal said the government should revise the duties on used cars based on current price level and at least give the auto and parts manufacturing industry in the country a level playing field.