Local Auto Industry Voices Concerns About The Tax Rates
Coronavirus has affected various industries. It’s safe to say that almost all the businesses and companies are struggling to maintain their position to survive this pandemic. The cherry on top is that the government announced the latest budget. The local auto industry isn’t happy about it.
Direct General Abdul Waheed Khan expressed his displeasure about the hike in tax rates for various vehicles in the Finance Bill of 2020. He said, “The sector was hoping that government will at least slash unnecessary taxes including, Additional Sales Tax (AST), Additional Customs Duty (ACD), and Federal Excise Duty (FED) of 2.5-7.5%, depending on turnover tax and engine displacement..”
Automakers are raising their voice to get a reduction in taxes. Former Chairman Pakistan Association of Automotive Parts and Accessories Manufacturers’ (PAAPAM), Mr. Mashood Ali Khan, pointed out that the entire automotive industry was looking forward to 2020 being the year of their success. The outbreak of coronavirus has squished these hopes. The government should have offered relaxation to the industry, so it could survive the tough economic times. He stated disappointment, “we were burdened with additional Customs Duty of 7-11% and Federal Excise Duty (FED) of up to 7.5%.”
Mr. Mashood was vocal about how the auto industry has been going downhill, especially since the summer of 2019. It was evident that he was unhappy with some government policies regarding the automotive industry.
Mr. Mashood added, “Then, we placed our hopes on new vehicle models to boost the sales, but the coronavirus outbreak resulted in zero car sales in April 2020, and instead of going up, we have gone down in production. Now, we only hope that the government to provide relief through tax concessions.”
This is surely a very tough situation. Looks like the odds aren’t in favour of the auto industry. We hope and pray for everything to be back to normal, in fact even better. Insha’Allah.
Automoteve.com is your go-to resource for latest auto news, tips, HOW-TOs and vehicle comparisons. You can follow our social media accounts on Facebook, Twitter, Instagram, LinkedIn and Pinterest to stay updated with news and updates. If you wish to decipher the world of automobiles, you have landed at the right place.