To or Not to: Rs0.1 Million Tax that can Curb the Menace of Premium in Pakistan

car-sale

IMC’ CEO, Mr. Ali Asghar Jamali in a recently surfaced interview suggested that the government should levy a duty of Rs. 100,000 per vehicle from the owners who book new cars and sell them within the first six months from vehicle’ date of purchase. As per Mr. Jamali, this move will help to curb any artificial shortage of cars in the local market.

He remarked ‘If the government places an additional duty of Rs. 100,000 per vehicle for those owners who buy new automobiles and sell them within six months, then there will be no shortage in the market.’ Jamali elaborated that the future of Pakistan’ auto industry looks bright and promising as he is hopeful that the country will produce up to 500,000 cars per year by 2022.

Currently, Pakistan imports 40,000 JDM’ each year, which stacks up 15% of the total sales out of 283,000 units being sold in the country. Considering the upcoming number of car launches, experts are predicting that local market is about to receive a massive influx of new cars, which will weaken the JDM car import culture in Pakistan.

 

Notable Replies

  1. aa78 says:

    Useless move. People are paying 300K own willingly on a particular model. Will 100K more really deter them?

    Make the penalty half the price of the new PKDM car if sold in less than 12 months post-delivery and then you have a reasonable deterrent against car investor mafia. Some genuine customers will inadvertently suffer but overall, it will improve the availability issue.

  2. How can you implement tax on selling of a car?

    I buy a car i didnt like it. ( i have to keep it to avoid tax)
    I have a medical emergency i need cash ( what do i do i goto goverment make medical certificate then sell it)

    If someone is buying cars on a same NTN/NIC with in a period he should be taxed.

    For example a person buying 5 cars in six months.

    Or other wise advance payment should be discouraged.

  3. IMC must take step to fill demand n supply. If people can get car in a month majority will avoid on money. Additional tax is no solution.

  4. its not OWN, its a premium a seller can earn ( by the willingness of the buyer ofc ) for immediate sale .

    IMC should address their own issues of capacity and on time deliveries , vs advising the govt to levy stupid taxes inadvertently , driving people to buy more JDMs

  5. now sellers demand Invoice+WHT+ own money, people still buy cars. altis grande gets sold for 26lacs and few buyer pays 20-100k again was WHT.

    so it this is implimented sellers with add this 100k to price and people will still buy it

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