On 16, October 2017, the government of Pakistan issued SRO1035 (1) /2017 againts Audi, BMW, and Porsche Pakistan in courts. And the ground for its issuance in accordance with the government was to bring to an end to the devaluation of the rupee. During this SRO government altered the regulatory import duties on several imported products ranging from machinery to groceries and a total of 731 products. By means of the issuance of new SRO, the import duty on imported vehicles also altered and this made many vagueness and buzz in the local car market.

A lot of cracked the SRO in a different way as per their inspirational thoughts and information. A few groups of people were nastily dispersing rumors that government has put up a new regulatory import duty on the completely new and used imported vehicles. On the other hand, after going throughout the SRO cautiously, one can observe that the regulatory import duty was altered for only new (zero-meter) imported vehicles.

Now, the new SRO has been faced up to in the praiseworthy Courts by Audi, BMW, and Porsche Pakistan. These particular brands introduce new cars in the country. Audi and BMW Pakistan have argued that SRO 1035(1)/2017 is fallacious. Likewise, Porsche claimed that the SRO is entirely unacceptable in both letter and spirit. It is moreover harming and destroying the business.

A case have been filed by BMW and Audi Pakistan in Sindh High Court whereas Porsche Pakistan in Lahore High Court. BMW and Audi Pakistan filed under the article 199 of the constitution of Pakistan, 1973 on the following basis a few are talked about below.

  1. That the provisions of sub-section (3) of section 18 of the Act, 1969, is ultra vires the Constitution, and are liable to be struck down.
  2. That the rate of regulatory duty imposed under the impugned notification is disproportionate, exorbitant and extortionate.
  3. That the issuance of the impugned Notification dated 16.10.2017 is in violation of Article 18 and 25 of the Constitution, which requires protection of free trade.
  4. That the unlawful delegation of the legislative power to execute authority is not violative of the Constitution of Pakistan.

Spokesperson of Porsche Pakistan told that this is the foremost time that the court has established a petition. Furthermore, he uttered that:

“If we won the case on the court, each and every regulatory import duty which we would pay below new SRO should be compensating to us. Government is dispiriting legal businesses owing to illegal and invalid SRO it is issuing. We pay tax, GST and all other taxes and do business through legal channels”, he further added that:

“This SRO is against the Federation of Pakistan. And it was promised in auto policy 2016-2021 that the import duties will not be increased further.”

Porsche went in advance and filed petition on the basis that this entire SRO is unacceptable and argued that,

  1. The learned counsel for the petitioner lays a challenge to the SRO No.1035 (1)/2017 dated 16.10.2017. According to the learned counsel, the issuance of this notification offends the judgment of the Supreme Court of Pakistan in Messr Mustafa Impex Karachi & others v. Government of Pakistan through Secretary Finance, Islamabad and others (PLD 2016 Supreme Court 808) as also that the duties levied through this notification are expropriator and offends the fundamental right of trade and business and treaty in the Constitution.

As said on top, as per Porsche’s spokesperson, this is the foremost time a petition has been taken in by Court, and also the face that the petition was filed by Porsche. The respondent shall file an answer back in court on 30.11.2017. Furthermore, it would be significant to talk about here that as per C.M.No.01/2017 (Any duty to be paid by the petitioner shall be subject to the final outcome of this petition)– Making it easy, if Porsche Pakistan won the case regulatory import duty will be compensated, or else, they will not be receiving any recompense from the government.  Porsche’s Case No is W.P.No.97255/2017.

Let’s foresee what is going to happen. What are your thoughts? Let us know in the comment section below.