Pak Suzuki Motor Company (PSMC) has sustained heavy blows lately due to poor sales, price hikes, tax rate hikes, and import restrictions, the bane of all auto-industry. The government’s latest plans to increase taxes further may be the straw that breaks the camel’s back.
Pakistan’s largest car company by sales and production volume has sent a letter directly to the interim Prime Minister of Pakistan, Mian Shahbaz Sharif, requesting him not to approve the aforementioned plan.
The letter reads:
Here, we would like to bring to kind notice that PSMC is going through the very worst of times in its history of about 40 years. The company has already suffered huge losses of Rs. 12.9 billion in the first quarter of the current year due to current economic uncertainties. The company is also observing many “No Production Days” every month throughout the year. In addition to this, our dealers and vendors are also suffering very badly due to the current economic and business situation, as some of them are already closed and many more are on the bring of closure.
Suzuki asked the Prime Minister to not allow tax hikes on cars up to 1,000cc. This seems prudent, given that the automaker’s lineup is mostly cars with 1,000cc or smaller engines.
The auto industry has spoken out against the government’s plans to increase taxes in the coming budget. Time will tell if the government will respond to their collective SOS distress calls.
