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Blackmailing Again: Suzuki Demands Tax Benefits for a $450 Million Investment

Days after promising to invest $450 million for a new assembly plant in Pakistan, Suzuki Motors have now started blackmailing the government to get tax exemptions.

The company has demanded the government to grant it a Greenfield status under Automotive Development Policy (ADP) 2016-2021 which allows tax exemption for new investors.

The policy, however, does not allow granting an extended Greenfield investment status to existing automobile manufacturers like Suzuki, Indus Motors and Honda reports Express Tribune.


Suzuki is the Worst Offender of Safety Standards in Pakistan: Report

As per the Ministry of Industry and Production (MoIP), Suzuki, which maintains a market stranglehold and dominance in Pakistan and currently falls in the Brownfield status under the ADP, is pushing the government to revise its policy to get the Greenfield status.

The policy was introduced by the PML-N government two years ago to attract investment in the automotive sector.

A similar situation had occurred during the PML-N rule, but their administration stood resolute and rejected these tax benefits to existing Japanese automobile assemblers.


Pak Suzuki Ready to Set Up Its Second Manufacturing Plant In Pakistan

Ministry of Industries’ Secretary Azhar Chaudhary said that the government was not considering any revisions in the ADP 2016-2021 at the moment, and even it did, it will take all the stakeholders into confidence including the new entrants and it won’t be a party specific decision.

  • Na Pak Suzuki (owned by Suzuki) will never be a reliable partner for the local auto industry or consumer…. The reason is that Suzuki’s main market is India in every segment they will never do anything good for Pakistan, they make more than 90% percent of their car parts in India meanwhile in Pakistan everything is imported and assembled from Thailand, Indonesia and Japan…..

  • i hope govt will not give any relaxation, it will discourage new entrants and they may pull their investment out as they are still in the process of building infrastructure.

  • So after 70 years and that also after new companies are coming in you decide to invest and think that you can benefit from the same advantages as a new company. You have pathetic cars with lowest quality and safety standards for the highest price. I have a solution for you guys don’t invest and your brand will be dissolved in competition anyways.

    • Suzuki knows now its difficult to exist in chines products. Its just do more of unrealistic demands to have more or rollback n sell plant to Chinese vendors or make way for rest of Japanese to ask the same favours.

  • They are in 0 in following safety and quality standards and super opportunist over such little deeds of their selves.

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