The upcoming policy changes:
The Budget 2021-2022 has been released and indicating many upcoming policy changes. Thoughts are being made about the changes which are expected in the new auto policy.
It has been announced that the government has to revoke Federal Excise Duty (FED) on locally developed vehicles with an engine displacement of 850cc or less. This is because the Duty rate was 2.5% before the development.
Lowering Sales Tax:
Federal Finance Minister Shaukat Tareen further informed in the budget 2021-2022 that sales tax on the said segment of cars has also been felled down from 17% to 12%, resulting in a 4.5% reduction in tax rates. Such Companies names Pak Suzuki Motor Company (PSMC), Regal Motors, and United Motors are the only companies that currently assemble and sell vehicles with an engine capacity of 850cc or less, which suggested that approximately Rs 150,000 should be reduced in their prices.
Furthermore, the All-Pakistan Motor Dealers Association (APDMA) chairman, HM Shehzad, recently requested the government to make changes in the new auto policy that will be implemented after introducing the 2021-22 budget.
Restrictions on commercial imports:
Shehzad proposed that it should amend the restrictions on the commercial imports of old vehicles to Pakistan. In his letter to the government, reduce rate tariffs on imports of these vehicles to create a more competitive atmosphere.
The automakers are highly awaiting a better pricing strategy while the government seems to be making active efforts to strengthen the local auto industry. The development above also signals the arrival of significant new small cars in the Pakistani market.
Head of PR and Official Representative of PSMCL Shafiq Ahmed Shaikh said, “these are great motivating forces and advantage to the shoppers for the auto segment. We are increasing in value of the government on this.”
Auto financing cars rates:
PAAPAM’s previous chairman Mashood Ali Khan said assess and obligation alleviation cars up to 850cc would move the request forward, boost capacity utilization and work within the auto segment. He encouraged the government and the State Bank of Pakistan (SBP) to consider cutting intrigued rates to five percent from seven percent on auto financing of cars up to 850cc to supply extra advantage to the shoppers.
How useful was this article?
Please rate this article
Average rating / 5. Vote count:
