Checking the Auto Price Hike

Byline: SYED FAZL-E-HAIDER The government recently allowed the import of five-year used cars to check the auto price hike. The government plans to import 15,000 to 18,000 used cars under these schemes over the next six months. The decision has probably been taken to provide an alternative to people to buy cheaper cars. It would also yield additional revenue. Some analysts believe that the government has actually created an instrument of competition against car assemblers by allowing import of used cars. They however contend that the car age for imports from three years to five years will not serve any purpose as the gap between the selling cost of the local cars and imports under the present duty structure is very high, which will ultimately decline the import of used cars.