Ever since the development of the new auto policy is under construction, the public has one question and one question only. Will the car prices go down? Everyone’s been waiting for the auto industry representatives to speak on the matter. Finally, they have. Apparently, there’s a possibility for the car prices to come down (Phew!). However, it’s a matter of give and take, which means the auto industry wants something in return.
Recently, a delegation of the Pakistan Automotive Industry got on a video call with the Federal Minister for Finance and Revenue, Shaukat Tarin, and put forward their demands for the upcoming budget. The delegation has committed to lower the car prices and deliver the cars on time if these demands are fulfilled.
Auto Industry’s Demands
The delegation presented the demands of the auto industry. Basically, they want concessions in sales tax, Federal Excise Duty, Customs Duty, and Additional Customs Duty. They informed the Minister that these additional taxes could hurt car prices and sales of automobiles.
The Minister’s Response
The Finance Minister assured the delegation that the government is aware of the issues of the business community and is ready to rationalize taxes and duties to increase the taxpayer base and remove unnecessary hurdles by FBR in the expansion of the businesses, small or large, for the overall benefit of the economy. In short, the Minister said, “daikhtay hain dost!”
The wrap up of this whole discussion is that the additional taxes in the upcoming budget are directly proportional to the car prices. If the Ministry of Finance cooperates with the auto industry to reduce additional taxes, the auto industry will decrease car prices. All we can do is wait and watch.
Do you think this equation will bring positive results for the consumers? Share with us in the comments.
