So, here is some information.
MG HS declared price per unit is $11632.00
Total incidence of duties = 123.77% [ This includes 17% sales tax].
The 123.77% is the correct duty for 1300 to 1500cc vehicles. So, they are using accurate duty % and basically paying full duty.
Import Frieght approx PKR 300,000/ unit.
Duties > 11632 x 123.77% = $14,397
Unit Price $11632
Total > $26,029 /- = PKR- 4,190,592/-
Add import frieght & handling of 300K.
Total approximate landed cost = PKR- 4,490,592/-
MSRP > PKR- 5,499,000/- [ inclusive of 17% tax ]. As far as I know this 17% goes to JW-ZES because a 17% sales tax is already paid to FBR at import. And that 17% is collected on the unit price of the declared value while this 17% is on MSRP, taken from customer and not goes to FBR. Am I right ??? Please correct me if I am wrong..
As per available information, there is nothing actively going on for factory. MG just got green field status when policy is near expiration. It seems they might not even start a CKD anytime soon. It looks like like an EYE-WASH..
They are already making profits on CBU. Money going outside the country on import. Why invest on CKD and installation of plant ? Their green field status just now when auto policy is already near expiration also raise questions.
Also they have been selling these units mostly to third party dealers/ investors and there is a premium also involved. I am sure you are seeing many brand new MG HS at this party dealers in Lahore and other cities. Maybe JW-ZES also taking their cuts on it/ premiums. Remember government already thinking to allow imports in upcoming budget/ next auto policy.
Overall, things seems confusing and as of now the after sale service is also a question. They opened an outlet for parts on Montgomery road Lahore where a MG banner is bigger than the parts shop itself and as per info given to me has a inventory of around 5 Million and that too does not carry anything substantial.
