The government recently banned purchasing property worth over Rs 5 million and the purchase of vehicles by non-filers. The ban will come into effect from 1st July 2018 and a sudden drop in auto sales is expected by the manufacturers. However, the ban won’t be impacting the local auto assemblers who still plan to manufacture vehicles to their maximum capacity until September 2018.
Toyota and Suzuki are expecting a bigger dent in sales as most of their buyers belong to rural areas where people normally don’t file tax returns.
The three major auto assemblers in the country – Toyota, Honda, and Suzuki – have already stopped taking orders from the non-filers.
The companies have further advised their customers to register as tax filers to avoid any hassle or delay in their orders.
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As per the reports, the decision to put a ban on non-filers hasn’t made any real impact on companies’ manufacturing plans. The reports add that following production numbers will be seen over the course of new few months:
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Senior Vice Chairman PAAPAM Mohammad Ashraf Shaikh told;
The schedule of procuring parts and accessories by the three assemblers has not shown any sign of a drop. Assemblers’ production plans until September are more or less same so far as per parts procurement schedule received by the vendors.
Indus Motor Company’s representative told that so far there is no change in the production plan as the company has to clear pending orders for July and August. The representative further added:
The industry has asked the government to exempt those orders of non-filers which were booked prior to the decision so that vehicles could be easily delivered in July-August 2018.
The import bill for SKD (Semi Knocked Down) and CKD (Completely Knocked Down) also increased year-on-year. The current CKD/SKD imports stand at $655 million for July-April period as compared to last year’s figures of $532 million for the same time period.
Via Dawn