Pakistan’s auto sector is at odds with the Federal Board of Revenue (FBR) over data demand. The local car assemblers/manufacturers have asked the government institution not to ask for data from the sector. “This will hurt the ease of doing business policy in the country,” automakers said.
In their letters to FBR Chairman Javed Ghani, both Pakistan Automotive Manufacturers Association (PAMA) and Automotive Parts and Accessories Manufacturers (PAAPAM) have pointed out this issue.
PAMA DG:
PAMA Director-General Abdul Waheed Khan said that procedures specified in SRO 615(1)/2020 do not apply to the sector because all required data is already part of FBR’s record. Khan further stated that Pakistan’s auto sector is wholly documented and repeated demands on data will create hurdles for the business. “Automobile industry has always supported the government’s stance over documentation of business, but this approach by FBR will be a negative impact on local industry,” he said.
The director-general stated that auto industry has been monitored by several government institutions, including FBR and Engineering Development Board (EDB); hence, the government already has complete records of the sector.
PAAPAM Chairman:
Supporting this argument, PAAPAM Chairman Muhammad Akram stated that auto manufacturers are working under strict regulations of EDB, Web-Based One Customs (WeBOC), and Ministry of Industries. “EDB has already implemented verification process, which is currently demanded by FBR,” Akram said.
PAMA Report:
The domestic automobile industry is already facing slow high taxes and sluggish sales. The latest PAMA report revealed that car sales in Pakistan have plunged by 53 percent in FY2020. The overall sales of cars fell to 110,583 units in FY20, comparing to 235,229 units in FY19. The report shows that Honda Atlas Cars faces the most significant decline of 63 percent. The company sold 16,390 units in the ongoing year, while its last year’s sales were 44,234 units.
However, the industry is seeing a growth in month-to-month sales after the government eased COVID-19 restrictions, and dealerships of these companies started their operations.
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