The minister hinted at restoration of the scheme at a press conference here. He hoped that restoration of the concession for overseas Pakistanis would supplement the efforts of the government to rationalise the prices of cars in the local market.
The minister said reduction in duty on import of cars in the budget would ultimately substantially bring down the prices of cars, besides putting an end to unhealthy practice of charging premium from the buyers.
He told a questioner that local car assemblers were taking undue advantage of the government's concessions and minting money by unlawful means.
He said that the local car manufacturers have been indulged in unhealthy practices to maximise their profit/margin and, according to him, some of these were delaying delivery despite charging 100 percent payments, charging of premium and low quality products.
Jatoi said the Industries and Production Ministry has set a committee to look into the complaints of substandard locally made cars.
He said that the government officials held series of meetings with local car manufactures to convince them for reduction in prices, but all went in vain and this left the government with no other option but to rationalise duties so that the buyers could have an option of import to get cars of their choice.
The minister criticised the local car manufacturers for not fulfilling their social obligations towards the civil society.
He appreciated President Musharraf, Prime Minister Jamali and Finance Minister Shaukat for presenting a growth-driven budget.
He hoped that the budgetary measures would help the government in achieving desired results for the progress and prosperity of the country.
The minister added that tariff has been rationalised with a view to make industry competitive both in domestic and international markets.
Jatoi recalled that the ministry went through hectic exercise to prepare recommendations for 2004-05 and constituted 15 sub-committees to discuss and finalise the proposals in consultations with the stakeholders.
He said in total duty for 564 items has been changed for 2004-05 and out of which 469 were recommended by the Industries and Production Ministry. The minister listed various sectors, which would directly benefit from duty rationalisation.
Some of these were chemical, engineering dyestuff/textiles, pesticides (raw materials at zero percent) paints/varnishes, soap and detergents (raw materials at 10 percent).
He said that to keep steel and its products at some reasonable level, duty on raw materials of Pakistan Steel has been reduced to zero percent. Other steps included reduction in duty on iron ores, manganese ores and coal.
Duty on billets, ingots and steel scrap has been reduced to 5 percent from 10 percent duty on steel bars and steel coils of prime quality reduced from 25 to 10 per cent. Duty on Ships for breaking has been reduced from 10 percent to 5 per cent. Duty on dump trucks for off highway use has been reduced from 40 percent to 5 percent for construction companies registered with Pakistan Engineering Council.
Duty on raw materials for paints/varnishes has been reduced from 10 percent to 5 percent and on finished paints and varnishes from 25 percent to 20 percent. Duty on sack kraft paper has been reduced from 20 percent to 10 percent.
Jatoi counted various incentives announced for agriculture sector. These included reduction in interest on loans and import of tractors and bulldozers at less duty.