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FTO Recommends FBR to Penalize Pak Suzuki Against Late Delivery of Cars

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The Federal Tax Ombudsman (FTO) has recommended that the Federal Board of Revenue (FBR) direct Pak Suzuki Motor Company (PSMC) pay KIBOR plus 3 percent per annum against late delivery of cars exceeding 60 days of initial booking.

According to the details, a customer filed a complaint against the Regional Tax Office (RTO) and PSMC. The complainant alleged that he took delivery of his car by PSMC through its authorized dealer after a delay of more than five and a half months against the permissible period of 60 days.

During the delay period, the rates of Sales Tax & Federal Excise Duty were enhanced by the government to 17 percent and 2.5 percent respectively, on vehicles exceeding an engine capacity of 850cc.

The complainant was charged as per new rates by the company following the tax rate hikes. FTO stated that the excess amount should be refunded to the plaintiff and action should be taken against PSMC for its tactics.

During the hearing, the complainant, the associate representative from PSMC stated that the provisional booking order, issued to the complainant by Suzuki Islamabad Motors, includes a customer declaration on behalf of the complainant which reads:

I hereby declare that I have read and understood all terms and conditions contained on reverse side of this provisional booking form and accept the same in total without any reservation and undertake to abide by the same and amendment thereby.

The Complainant stated that he had suffered a lot of mental and financial hardship on account of extra financial burden due to delayed delivery, for which, the automaker is responsible.

He also invited attention to the Revenue Division’s Customs Notification SRO 656(I)/2006 and its amending notification SRO 837(I)/2021 which notifies that

The importer-cum-assembler or Original Equipment Manufacturers (OEM) shall pay KIBOR plus 3 percent per annum to the customer against delayed delivery exceeding 60-days of initial booking.

FTO’S finding also stated that PSMC is bound and liable to pay to the Complainant KIBOR +3 percent per annum against late delivery exceeding 60 days of initial booking on the whole of the deposited amount.

  • Aoa
    Boss what’s your opinion about toyota company, they deliver cars after 6 or 7 months. Please take notice of all companies.

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