Pakistan’s auto industry has communicated its concerns about the implementation of new taxes to the government, highlighting that the hiked rates oppose the Automotive Industry Development and Export Plan (AIDEP) 2021-26.
Auto parts manufacturers and vendors jointly sent a letter to the Ministry of Industries and Production, warning that the recent duty and tax rate hikes imposed on the local car industry could have dire consequences for them.
The CEO of S.M. Engineering, Syed Muhammad Ishtiaq, told the media that the industry has requested the government to abide by the AIDEP 2021-26 and to allow automakers to progress steadily.
“The auto sector is a long-term based industry and needs stable policies but the government has deviated from the official policies,” he said and added that frequent policy changes result in a trust deficit among the investors.
Ishtiaq stated that the government should instead focus on preventing used cars from being imported to Pakistan. He mentioned that over 27,000 used cars were imported to Pakistan last year in a blatant misuse of the personal baggage and gift scheme.
Ishtiaq disclosed that the auto sector has also urged the government to devise a different strategy to mitigate the issue of the imports of used car imports as the increased duties have barely stopped them.
“We are already facing the brunt of rupee devaluation and additional duties, while the misuse of imported used cars schemes will be very detrimental for the industry,” he remarked.
It’s funny because when they hike prices and expect customers to keep paying them despite having made full payments, it is justified, when the government does it, suddenly the entire sector is in danger. Bravo.
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This government should not be trusted for investment. I just paid extra Rs.126,000 for my cultus booked with full payment in start of Oct 2021. I no longer think it is feasible for any investor to even consider Pakistan.