ISLAMABAD (our reporter):- Pakistan’s auto industry has expressed its concerns over the raising tax rates, oppose of the Automotive Industry Development and Export Plan (AIDEP) 2021-26.
Auto parts manufacturers and vendors jointly sent a letter to the Ministry of Industries and Production, warning that the recent duty and tax rate hikes imposed on the local car industry could have dire consequences for them.
The CEO of S.M. Engineering, Syed Muhammad Ishtiaq, told the media that the industry has requested the government to abide by the AIDEP 2021-26 and to allow automakers to progress steadily.
“The auto sector is a long-term based industry and needs stable policies but the government has deviated from the official policies,” he said and added that frequent policy changes result in a trust deficit among the investors.
Ishtiaq stated that the government should instead focus on preventing used cars from being imported to Pakistan. He mentioned that over 27,000 used cars were imported to Pakistan last year in a blatant misuse of the personal baggage and gift scheme.
Ishtiaq disclosed that the auto sector has also urged the government to devise a different strategy to mitigate the issue of the imports of used car imports as the increased duties have barely stopped them.
“We are already facing the brunt of rupee devaluation and additional duties, while the misuse of imported used cars schemes will be very detrimental for the industry,” he remarked.