"Sale at the city's car showrooms has dropped to half due to the government's high tax measures, appreciation of dollar, and Japan's recent disaster, resulting price hike of all kinds of car," Mahbubul Haque Chowdhury, former general secretary of BARVIDA said.
Due to appreciation of dollar, importers are forced to pay Tk 90,000 more for each car in April, which was Tk 75,000 in March.
An importer opened letter of credit (LC) at the rate of Tk 69.50 per dollar, but he has to pay Tk four more against per dollar, as the rate of dollar reached Tk 74 at the time of bringing the car, he explained.
Besides, Pakistan government has lifted the ban on import of reconditioned cars from last November. It is another reason of car price hike, as local importers are facing tough competition with the Pakistani importers.
"A car which we could be bought earlier at $10,000, now costs $13000 due to this competition," he also said.
News Source: The Financial Express