Saturday September 23, 2023

Leaving local auto industry unsupervised and monopolistic against competition law

July 14, 2020

LHC seeks reply from government on ban on car import

By our correspondent

LAHORE: The Lahore High Court on Monday sought replies from federal government and other respondents on a petition challenging the ban on import of vehicles.

Justice Sajid Mehmood Sethi was hearing a petition jointly filed by All Pakistan Motor Dealers Association and Car Dealers Federation-Lahore. The petitioners’ counsel Azhar Siddique argued that the federal government through the SRO on 15 January, 2019, amended the import policy and permitted the import of cars/vehicles under transfer of residence, personal baggage or gift scheme only.

He said in absence of any other mean for the import of vehicles, by virtue of the SRO, import of vehicles which generated revenue of Rs100 billion, annually, approximately, for the government in the form of import duties, levies and advance income tax, was likely to be shut down completely. The counsel stated that all local manufacturers and assemblers had increased prices after the ban on import of the cars.

He said leaving the local auto industry unsupervised, unchecked and monopolistic was against the true spirit of competition law of Pakistan.

The counsel asked the court to set aside the impugned ban and permit import of cars in the larger interest of national economy, citizens especially the prospective consumers of good quality used imported vehicles. After hearing preliminary arguments, the court issued notices to the respondents and sought replies by next hearing.