Automobile Manufacturers & The New Auto policy 2021-2025 - Malpractices

[KamranAslam]

Below is the Cultus AGS Booked in May 2021 Delivered few days back.

May 2021 Cultus AGS + Filler = 2145K

At the time of Invoice 19/07/21 paid 17% Sales Tax of that May 2021 and No FED at Delivery

[abdulmajidqureshi]

Inboxed contact details

Annexed citizen portal complaint.

[shluqman]

Dear, is the sales tax is same? At the time of booking and on new invoice?
The thing is Mine isn't same. Sales tax on both (PBO & new invoice) and ex factory price (excluding of ST & FED) of PBO and new invoice, both are different. Then how come they've already paid the ST. ex factory price (excluding of ST & FED) are also updated in July, 2021.
I hope you get my point.

[KamranAslam]

^^^ Seems all fine on the invoice. 17% Sales Tax as per the booking date.

Again, Sales tax is charged as per the booking date.

[abdulmajidqureshi]

Deciet has no ground and Pak Suzuki has a history of mistreating its customers. The only solution is to knock doors of legal forums. I just skimmed through all forums didn't find a single complaint from the other dozen manufacturers. Its on suzuki customers that have bought a falsified, unjust and stupid logic. Unless we raise our voice suzuki will not get its lesson.

[abdulmajidqureshi]

We have assembled an action group on whatsapp. If interested to take action please inbox me your mobile numbers.

[abdulmajidqureshi]

We also need to request @HanifBhatti and @suneelmunj to take up this matter in his Upcoming Pakwheels Weekly this Friday.

[engrzeeshan88]

I also agree with you. I purchazed suzuki cultus vxl having invoice rate 1903200 with sales tax 17%. Invoive date is 15 july 2021. As per my legal advisor sales tax will be submitted latter by suzuki motors. Can anyone consulted from suzuki regional office in this matter?

[engrzeeshan88]

It is also mentioned in the invoice that "Tax collected will be duly submitted with the FBR" which clearly mean that suzuki motors tells a lie about submission of sales tax before invoice generation.

[pwuser161069564631]

I have also face the same problem with my alto vxr , which was booked in may but delivered and invoiced in July.
Is anybody know what other manufacturers (Honda, Toyota, KIA etc) are doing in this case?

[shluqman]

Haven't found any below 1000cc vehicle delivered and invoiced in July

[abdulmajidqureshi]

Thanks to @suneelmunj for raising the issue in this week's Pakwheels Weekly. I think this post will become good ground to put up a fight.

Also I got a chance to study consumer laws and Sales Tax Law by virtue of this group.20217161373354644SalesTaxAct,1990updatedupto30.06.2021.pdf (2.1 MB)

As per the law, Provisional Booking Order is not the invoice. They issue PBO because as per Sales tax ordinance the tax is charged on date of supply of goods and not on date of booking and the manufacturers don't want to be penalized on delay of delivery of goods due to issuance of invoice. Now when they have issued invoice they are illegally overcharging the tax.

Upon complaints to multiple fora, it has been found out that SECP and Ministry of Commerce endorsed the point of view of consumers in this group and have directed FBR to take up the matter as per prevailing law.

[ShahnawazKhan1]

Any updates on this?

[abdulmajidqureshi]

We have made an action group of concerned citizens on whatsapp. We separately filed complaints on PM Portal and sent notices to company to reply. Now we are moving towards consumer court. We encourage others to join also. Pakwheels raised our voice as consumer in their Last weekly.

[ShahnawazKhan1]

I have sent you a PM. Please add me to relevant whatsapp group.

[pwuser160061739222]

We have also lodged a complaint with the Federal Tax Ombudsman in Islamabad regarding over charging of Sales Tax. As per Sales Tax Act, 1990, if there is a change in the rate of the tax, then the tax prevalent on the date of supply (delivery of supply) will be considered admissible. Clearly, if Suzuki deposited Sales Tax months prior to the sale (date of invoicing) it was illegal and unjustified.

The PSMC in all its letters of price revision has been noting that the Tax applicable on the date of delivery will be applied also. This means it is a simple case of willful fraudulent overcharging of tax. Inshallah, we will take PSMCL to justice. But the irony is that selling cars for over 40 years, suzuki will be taken in court against consumer instead of going to court against FBR with consumers. That speaks of the side these big 3 are always willing to take, they dont stand with their consumers rather the fat bribed tax collectors.

[abdulmajidqureshi]

Thanks to forums like Pakwheels the ordinary consumer is more empowered unlike before. Thank you for iterating the point of view. Paksuzuki is also in violation of bringing in effect prices wef 1st July 2021 in its letter displayed publicly and as indicated by you. Thanks to blunders of Pak Suzuki the consumers have a strong case against it.

Perhaps dealers, on mafia and agents of Suzuki may not have an issue, but a hard earning middle class citizen who uses his legally booked and bought vehicle after a long wait is quite adversely affected. There are over 8000 affectees by modest estimates of this over charging and I'm glad many have come forward and spoken about it. On behalf of our whatsapp group, I would like to thank @Suneelmunj for raising this issue in the Pakwheels Weekly.

[bobtheminion.evil]

I have seen posts from some users constantly trying hard to convince everyone that the illegal practice of Na-pak Suzuki is actually legal
I have talked to one of the representative of FBR and also one of my friend who work for an auditing firm, and the end result of the discussion is that the Sales Tax applied as per the invoice date or in case of cars the actual delivery date
so it seems either they are deliberately misguided people or they genuinely don't know the actual sales tax ruling by FBR
Glad that people are actually taking steps to encounter the illegal practices by these mafias of auto industry

[bobtheminion.evil]

Whatever you say, everyone whom I talked to regarding this issue told me that sales tax will be based on invoice and delivery date
Also as per selected text I think this part of the ruling will be applied when the exact delivery date is confirmed and based on that payment is received by the supplier
it seems you are more inclined to provide benefit of doubt to Pak Suzuki and not the end customer, you keep on enforcing your opinions on everyone if you think Suzuki has deducted the sales tax rightfully from your invoice I have no issue, but please do not force your opinion on others

[abdulmajidqureshi]

We have already studied the Sales Tax Act 1990 and have sent a representation to the Federal Tax Ombudsman and inshallah everything will be crystal clear in a few days. The commerce ministry has agreed to our point of view of PakSuzuki not passing benefit to consumer against govt. policy.

I think the na paki in PakSuzuki will soon be washed away. They cannot embezzle Tax payer money or please Tax commissioners by cheating on consumers. Law isn't complicated, rather it is something which is understood in plain reading. People who complicate the argument are usually ones at fault. Even the PakSuzuki letter dated 8th July 2021 says that new prices have been implemented from 1st July while they are implementing prices which belong neither to the current Tax regime or the previous one.

For people who have registered their vehicles on a higher car value due to incompetence of suzuki deserve reparations. There are people who think registered vehicles will get no relief they are wrong too.