LAHORE, May 20: The Lahore Chamber of Commerce and Industry (LCCI) has urged the Federal Board of Revenue (FBR) to immediately announce a cut in levy on the import of hybrid cars to reduce load on the natural gas sector and help the government cope with the energy crisis in addition to the galloping oil import bill.

LCCI President Farooq Iftikhar, Senior Vice-President Irfan Iqbal Sheikh and Vice-President Mian Abuzar Shad said in a joint statement on Monday the FBR should encourage domestic assemblers to switch over to fuel efficient hybrid technology in the country with a view to cut oil imports and carbon emissions.

“Hybrid cars are almost twice efficient compared with non-hybrid cars, saving at least 40 per cent of fuel costs. The only other way of cutting fuel costs and reducing carbon emissions in the environment is conversion of all vehicles to CNG-fuelled ones. That is neither feasible nor desirable because of depleting gas reserves and high cost of imported gas,” said the statement.

The LCCI office-bearers said the government should give incentives to new investors intending to set-up hybrid car manufacturing facility in case the existing assemblers are not willing to do so.

“In spite of their high prices, imported hybrid electric cars are becoming quite popular among users in Pakistan for the last several months because of their fuel efficiency. The government has already exempted Hybrid Electric Vehicles (HEVs) from customs duty, sales tax and withholding tax, which are in excess of 75 per cent of the applicable tax rates under SRO 607 (I)/2012.

Under the notification, the depreciation in duties and taxes in case of old and used HEVs is admissible at the rate of two per cent per month subject to a maximum of 60 per cent. “Still the current import prices of hybrid cars, including the smaller ones, remain awfully high and out of reach of most consumers. The slight reduction in the levies is believed to have pushed import of hybrid electric cars,” said the statement.

PTA CRITICISED: The LCCI has taken an exception to “the hurdles created by the Pakistan Telecommunication Authority (PTA) in the way of genuine importers”.

LCCI President Farooq Iftikhar said in a statement that the PTA was meant to supplement government’s efforts to promote documented economy, but it seemed the authority had its own priorities.

It had been brought into the notice of the LCCI that the PTA was reluctant to issue NoCs for the import of tablet PCs on the pretext of preventing terrorism in the country.

“The PTA is seeking various test reports, including safety, EMC and radio test reports, from importers of tablet PCs having WiFi, HSPA, UMTS, GSM, EVDO and WiMax features to prevent terrorist activities, but the point is that these PCs have never been used in any subversive activity. There are reports that mobile sets and PDA mobile phones were mostly used in acts of terrorism, but no approval certificate has ever been sought for import of such mobiles,” said the statement and pointed out that the lengthy procedures of the Customs Department had been increasing demurrage charges and encouraging smuggling.The statement said if the PTA continued with the practice, no businessman would dare import goods through legal means.

The LCCI had already appealed to the FBR to relax import procedures, as cumbersome and lengthy documentation and involvement of a large number of government departments were strengthening smugglers’ hands.