KCCI seeks reduced taxes

KARACHI: The Karachi Chamber of Commerce and Industry (KCCI) has urged the Federal Board of Revenue (FBR) to reduce taxes and duties on the import of motorcycle parts with a view to discourage smuggling and provide relief to the common man, a statement said on Wednesday.

KCCI President Muafasdar Malik said that motorcycles are commonly used by the lower and poor segment of society only because of the affordability factor but the masses are being burdened due to high taxes and duties on motorcycle spare parts which affect the cost of motorcycle spare parts by almost 85 percent.

He informed that motorcycle spare parts are subjected to 35 percent custom duty, 11 percent additional duty, 17 percent sales tax, 6 percent income tax and 3 percent additional sales tax, which terribly raise the cost of these spare parts and make them unaffordable for the poor public.

“Hence, the government has to review the entire situation and accordingly take steps to reduce these taxes and duties in order to provide some relief to the masses”, he added.

He pointed out that the legal importers of motorcycle spare parts have limited their activities nowadays due to high taxes and duties, making these imported motorcycles spare parts uncompetitive in the local markets, particularly in a situation when these spare parts are widely being smuggled into the country.