How Can We Resolve ‘ON Money’ Issue? – Very Simple
We don’t need to tell you guys that the ‘ON Money’ menace is serious, and almost every new car buyer faces it in Pakistan. To get their cars immediately, people have to pay a premium and that is not fair. The counter the issue, the government has taken several steps.
Govt’s Efforts to Tackle ‘ON Money’
A few months ago, the government imposed an Advance Tax. The tax ranged from Rs. 50,000 to Rs. 200,000 on different cars. As per details, it was imposed on the individuals who will sell their new car within three months of purchase.
Following was the tax structure:
However, the step remained unable to control the problem. Henceforth, in the recent mini-budget, the government has proposed increasing this Advance Tax on Registration. As per the proposal:
- Advance Tax on Vehicle Registration of cars up to 1000cc will increase to Rs100,000 from Rs50,000.
- Tax increase on 1001cc to 2000cc cars to Rs200,000 from Rs100,000.
- Tax on 2100cc and above cars will increase to Rs400,00 from Rs200,000.
It means the taxes have been doubled. But we are doubtful about it because this government has already used this technique. So, the question arises, what can be done to resolve the issue? And its answer is simple, Transparency.
What Should be Done?
The companies should give very clear information about the booking and delivery time to the buyers. Like a queue in a bank or department store, there should be a line of PBO orders, and every customer should know his/her number. If the information is clear and everybody knows about it, no one would be able cut the line.
It means those “special individuals” or “dealers” who get the cars from company dealers without any wait and then sell it with ‘ON’. Like everyone else, they should also wait for the car for a specific time period for delivery. The process should be so transparent that no one can jump the line, no one could get the car early because of Waqfiyat or being a famous person or a dealer with influence.
Meanwhile, the government can also play its role in this whole process, especially when some “companies” book the cars in large numbers. The government should check the previous record, its credibility, balance, and presence of such companies in the market. A bit of accountability and investigation would expose such entities and may lead to
If companies and the government follow these simple steps, the menace of ‘ON Money’ can be controlled.