Web Desk (May 12, 2018): The Pakistan Auto Manufacturers Association (PAMA) fears that the non-filers would be reluctant to buy new vehicles after latest tax policies.
The condition imposed in the federal budget for 2018-19 restricting non-filers to buy new vehicle would frustrate the new entrants and would also shrink the annual of locally manufactured cars resultantly the sales would be dropped by nearly 32 percent.
Pakistan Automotive Manufacturers Association in a letter written to Minister for Finance, Revenue and Economic Affairs Miftah Ismail said that the new condition to be placed soon, allowing only tax filers to buy cars would result into sharp drop in the sales.
It would also cripple the government’s tax collection from the auto sector in the coming years. Currently cumulative contribution of the auto sector to the national exchequer has been around Rs 120 billion.
The Association said if the condition stays the early projection that the car sales to jump to 550,000 units under the Auto Policy of 2016-21 would be lost.
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