Car Sales Drop by 30% in 3 Months Due to Purchase Ban on Non-Filers

New car bookings have declined by 30% during the same period last year ever since the previous government imposed a ban on non-filers to buy cars from July 1st .

Experts believe that the true impact of the ban, which has now being reversed as part of the PTI government’s mini-budget, will emerge by December 2018.

It should be mentioned that the ban on purchase of cars by non-filers, was exempted in the case of the country’s agriculture sector, seeing as how it constitutes 30 percent of the country’s gross product (GDP).

As mentioned earlier, the ban was effective from the 1st July of the current financial year 2018-2019.

According to a source in the automobile industry, post-ban, the annual sales of cars will decline from 240,000 units to 168,000 units.

The ban has also affected sales in the low-engine capacity car market. Pak Suzuki Motor has reported a major decline in sales last month. The company dominates the low-engine capacity car segment below 1000cc vehicle category.

Pak Suzuki reported a sales decline of 27%, with its volumes falling to 8,683 units year on year. The biggest decline in its August’s sales occurred with its Ravi and Mehran variants, with their sales plummeting by 50 percent and 42 percent respectively.

The source also divulged that the value of the automobile’s industry’s annual sales will plummet by Rs.100.80 billion.

It is pertinent to mention here that this decline will also manifest itself with regards to the tax collected by the Federal Board of Revenue (FBR), with a shortfall of Rs 32.25 billion. Currently, taxes constitute 32 percent of a car’s price.

The source also stated that:

“The ban, if it persists, will lead to a reduction of 2,500 assembler jobs while 12,500 persons, directly and indirectly working for vendor plants, will also lose employment. It will cause a slowdown in the large-scale manufacturing industry and GDP growth.”

via ProfitPK


  • RIP Nawaz Shareef Ki Ghatiya Policies

    • College

      You want “New Pakistan” or “Tax Chooroon ka Pakistan” ?

    • CaR M0nitor

      is se nawaz shareef ka kya talluq??? tumhy kuch pta bhi hota hai ke nhi???? is policy ki ktni zrurat hai tumhy iski smjh hai bhi ya nahi??? bas tumhy kch na kch bolna hota chahy jo ho…

      • Yeah Benefits for Economics But What about unemployment and losses of production & sale ?? who is the responsible ? if you want to make a policy against Non Filer then Impose huge tax on non filer but not banned even a single product if they can save to huge tax then become a filer otherwise government have received taxes by non filer.

        • CaR M0nitor

          u think about unemployment, I have seen dozens of auto companies wrapping up their business because our government supported these 3rd class japanese trio, millions of people left jobless, in the end its a necessary evil, people cant avoid not purchasing cars for long, so if they are forced to buy cars only when they register and file their returns then its good for the country, consequently the govt. will have enough tax net to provide better support, moreoever, the trio honda, toyota, suzuki sales are suffering is good for the people u get it or not, they have been involved in malpractices since decades now, so if they suffer, its good…

  • Abu Zaid

    Good decision, these non-filers are true patriots of Pakistan and deserve maximum Tax relief.

  • Xahid

    This filler and non-filler thing should be treated separately, they should create charm for Fillers, but banning completely sales for non-fillers is a stupid decision.

    • College

      Black money holders also called as non filers should be dealt severely if we want to see progress in our country. There should be at least 40% with holding tax on non filers to purchase new cars.
      Why should we bother for these thieves (non-filers)?

      • Xahid

        I am filler from 13 years, because of Salary person, I never seen any benefits, just my name appear is the filler list.

        I don’t think you can call all the non-fillers as Black Money holder, Its a big Claim you cannot prove. since Most of the Pakistanis are non-filler, are you telling 80% Pakistanis are Black Money holders?

        • College

          The discussion is only about the people that fall in tax bracket.

          Non-taxed paid legal income by rich is also categorized as Black Money.
          Don’t confuse it with ill gotten money. That is Black+++

          The people who afford new cars are wealthy Tax thieves and we call them non-filers.

          Once these wealthy Tax Thieves/non-filers brought to tax net Govt will need no loans from IMF etc

        • College

          @I never seen any benefits, just my name appear is the filler list.

          You must be proud that you are contributing towards nation building and not Tax Thief / non-filter

  • CaR M0nitor

    Just cant ignore the 3rd class crap shown in the picture, look at it, it looks like it is graveyard item..

  • Shehzad_6

    There’s huge difference my friends regardless of who is filer and who is not ! The thing to consider is that who pays tax and who does not.
    1. A person who pays tax e.g. at source through his salary is a TAX Payer. He might NOT be a Filer.
    2. A person who evades tax by various tricks is a THIEF. He might be a FILER with filing zero or minimal returns.
    So recognize the difference.
    To me, ban on Non-filers had advantages and disadvantages of it’s own. I endorse this ban.
    Ban on purchase of vehicles and property was surely more advantageous. It was encouraging to become a Filer for those who DO pay tax but DO NOT file returns.