The troubles of the auto sector continue as, once again, Toyota Indus Motor Company (IMC) announced non-production days (NPDs) in June.
In an official notice to the Pakistan Stock Exchange (PSX), the company cited inventory shortage as a reason for the car assembly plant shutdown, which will take place from June 3 to June 8, 2023.
Auto Industry’s Distress Call
The federal government is reportedly planning to impose Withholding Tax (WHT) on locally produced automobiles on the basis of invoice price instead of engine capacity in the upcoming budget.
In response, the Pakistan Automotive Manufacturers Association (PAMA) has warned of dire consequences for the already struggling auto industry.
In a letter to the Chairman Federal Board of Revenue (FBR), PAMA stated that changing the basis of WHT will negatively impact the sales of locally-assembled cars.
PAMA has requested the board not to proceed with this proposal as it will inevitably raise their retail prices. PAMA has also requested to reduce the current engine-based WHT on vehicles.
Automakers are fearful that the continued operational struggle may put them out of business. The government is yet to issue a response against the auto sector’s cry for help.