Why does Pakistan have an astronomically high import duty?

[Musafar]

Hi, I've wondered this for a long time now.

Surely, if Pakistan wants to lift its economy it should really relax its import duty especially towards Pakistani's living abroad. Pakistani's living abroad already send back billions of dollars through currency to pakistan which helps the economy in general. Why does it not allow Pakistani's to import cars/motorbikes/buses/coaches/ JCB's at low prices so that villages in Pakistan can benefit from this as whole? Also don't you think it would create business and jobs? etc.

Everyone i've spoken to has told me that if you want to import anything to pakistan don't bother as it would cost you almost twice as much as the product or you'll have to pay some government official a bribe to let it in.

I would like to know if anyone has experience in importing into pakistan and the challenges they faced as well as if they think import duty should be relaxed also?

Thanks in advance.

 

[Evil Flare]

we are already short of $$$ ....... if we remove import duty we'll go bankrupt ..

 

[pak-yes]

Well import duties are high for feeding the rich.

As far as prohibition on import of cars etc.it is due to the lobbying of auto manufacturers because if Pakistanis are able to import cheap cars from abroad this will break their monopoly which they use to charge extra high rates for cars and then gives government its cut from it.

 

[Neither Right Nor Wrong]

Usually high import duty is levied in developing countries against foreign manufactured goods coz-

1. Local industry is still in its nascent stage, it can not compete against goods of developed country..ie A car manufactured in Pak cannot compete against a car manufactured in China..coz Chinese car will be cheaper. Hence it helps even out the playing field or give advantage to local manufacturer.

2. Makes the economy more self reliant ,less dependency on imports helps in times of crisis ie If sanctions are levied against a country , then all these imports
will stop and if local industry is not developed enough to meet the demand then prices will sky rocket.

3. Is a way of taxing rich ,without taxing the poor ie: A poor person living on street won't import a car, only rich ppl with lots of money will import cars.

4. Forces foreign companies to set up their industries in your country. ie to make their product competitive(to escape the import duty) in local market , a car manufacturer like Honda will have setup their plant in Pak , they will give employment to local population and taxes to the govt.

5. To reduce the trade imbalances ie when you are importing more than you are exporting : you are loosing valuable foreign currency and one way of addressing that imbalance is leving high taxes on imports of non essential commodities.

India also has high import duty of 148% on luxury items likes cars ,bike etc

 

[SoLiD_ImPacT]

Lowering down import duty can destroy local industries, they wont be able to compete with international prices. and if there will be too many cars in pakistan, it will increase pakistan import bill

 

[Patriot]

So that Federal Government can earn big bucks in taxes.I largely agree with high import duties.The elites should be taxed heavily .

 

[prodevelopment]

Let me play the devils advocate here.

I largely agree with high import duties.The elites should be taxed heavily .

I disagree. Why should the rich be taxed heavily? The rules of the game should be fair to all. The government's role should be that of a market regulator and to encourage competition.

Just because I am rich, why should I bear the brunt of the social burden? I am rich because either I, or my ancestors worked hard (And if the money came from ill gotten means, the govt. failed in it's job and I would not trust my tax rupees in their hands). It is unfair for me to be punished for working hard.

Import duties to the tune of 148% is ridiculous.

 

[flameboard]

If corruption does not get to it first, high import prices are usually used to support local market instead of markets outside of the country. When imports becoem expensive people turn towards local industries so that they may develop, and usually when the government is satisfied with the growth, import taxes are lowered.

 

[wali87]

Because of the growing Balance of Payment deficit. However reducing the deficit is one of the current government's only or few achievements. its true google it.

 

[BATMAN]

Market is flooded with foreign goods... which are not even allowed to import.
Import duty helps to pay the foreign trips of ministers.
YouTube - YouTube Pakistani Minister Qamar Zaman Kaira Scandal with an Indian Dancer Mujra

 

[sparklingway]

Import duties protect the domestic market courtesy the power of the industrial barons. Look at the pathetic and non-performing automobile and paper sectors who are protected through immense import duties.

 

[Donatello]

So that Federal Government can earn big bucks in taxes.I largely agree with high import duties.The elites should be taxed heavily .

Mostly the high import duty is on cars.

Look at the shyt quality of service and cars we get in Pakistan.

If they were to allow foreign cars to be imported ( made somewhere other than Pakistan) it will force our industries to raise their standard.

Look at the safety features of a lets say, Honda Civic here in Pakistan and then in USA.

Miles apart.

 

[PakSher]

Let me play the devils advocate here.



I disagree. Why should the rich be taxed heavily? The rules of the game should be fair to all. The government's role should be that of a market regulator and to encourage competition.

Just because I am rich, why should I bear the brunt of the social burden? I am rich because either I, or my ancestors worked hard (And if the money came from ill gotten means, the govt. failed in it's job and I would not trust my tax rupees in their hands). It is unfair for me to be punished for working hard.

Import duties to the tune of 148% is ridiculous.

Yes, but your opinion will not reverse the GOP's decision. Rich always pay more in every country, so what is the point?