KARACHI: The Pakistan Automobile Manufacturers Association, the representative trade association of the automobile industry in Pakistan, has opposed the proposal to base the withholding tax on domestic vehicles on the vehicle's invoice price rather than engine power.
In a letter of the association addressed to the chairman of the FBR, the implementation of the proposal for the imposition of withholding tax for vehicles based on the invoice price in the budget of the next fiscal year is described as a further problem for the crisis. hit the automotive industry. .
According to the association, vehicle withholding tax is currently levied depending on the engine power of the vehicle, while the application of the withholding tax on the invoice price will lead to a huge increase in vehicle prices which has plunged the car industry into a crisis, it cannot afford. There is no way and the withholding tax on the invoice price should further limit the sale of the vehicles.
The association emphasizes that the change in the method of collecting the withholding tax will increase the prices of vehicles and lead to a decrease in sales, while it will also complicate the process of tax collection.
According to the association, the automotive industry is in the worst crisis due to the economic crisis the country is facing. Most automakers are suffering billions of dollars in losses due to the import ban, high inflation and deteriorating economic indicators. Automakers already pay 40 percent per unit tax, so the existing system of withholding tax collection should be retained.
Appeal from the Pak Suzuki company not to increase tariffs and taxes on domestic vehicles
Meanwhile, the Japanese automaker in Pakistan, Pak Suzuki Motor, has decided not to increase rates and taxes on CKD of domestically produced vehicles in the upcoming budget, especially to reduce rates and taxes on 1000cc vehicles. appealed.
The letter, which the company sent to Prime Minister Shahbaz Sharif, said the company is experiencing its worst conditions in Pakistan in its 40-year history in the first quarter of this year due to economic uncertainty and volatility. suffered a loss of 12.9 billion rupees and had to stop production for an extended period throughout the year.
According to Pak Suzuki, the company's dealers and parts suppliers are also facing a crisis due to unfavorable business and economic conditions, many of which are closed and others are about to close.
The company says Pak Suzuki is struggling to survive. It is therefore important that vehicle taxes and duties are not increased in the next federal budget. In particular, levies and taxes on mass-produced 1000cc vehicles must be kept low. is ready
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