Islamabad: The Joint Meeting of Senate Standing Committee on Finance and Revenue and Standing Committee on Industries and Production, co-chaired by Senator Saleem Mandviwalla and Senator Aon Abbas, was held today to discuss the issues faced by Automobile sector.
Representatives of Automobiles Sector highlighted that the existing tax regime and recent decrease in Regulatory duty on used cars have plunged the sales of new vehicles and creating hindrances for Automobile sector. They stated that around one lac fifty thousand vehicles have been produced in Pakistan annually and which is the same as produced in 2004. In recent years, the Automobile sector has achieved the milestone of localization of auto sector, however, the decrease in Regulatory duty on used cars is threatening its survival.
Officials of Commerce Ministry stated that the Government has removed restrictions on the commercial importation of used vehicles in accordance with IMF commitment. Following the decision, the Government has decreased regulatory duties to create competitive markets and facilitate consumers. Officials optimized further decrease in Regulatory duty in the coming years and extending the limit of five years old vehicle to six to seven years.
Representatives of Toyota Indus Motors pointed out the existing taxes on various segments of vehicles and stated that the government taxed on SUV Fortuner is Rs. 1 crore 44 lacs and the market price of the vehicle is Rs. 2 crore 44 lacs.
However, Senator Muhammad Abdul Qadir favored the Government decision of reducing the regulatory duty stating that the decision will pave a way for competitive markets and will result in benefiting the consumers.
After a detailed deliberation, the Joint Committee recommended for rationalization of regulatory duty on used cars as it will affect the livelihood of 2 million households attached with the automobile sector.
In regard to the Cabinet recent decision for closure of Utility Stores Corporation, officials of Industry and Production stated that a relief package of around Rs. 14 Billion is underway and which will be disbursed among the affected employees of USC.
Concerning the recent fire in Export Processing Zone Karachi which was erupted due to delay in dumping of inflated wastes.The Joint Committee directed the FBR to draft a workable mechanism for timely dumping of inflated waste to protect the Export Processing Zone from any loss in the future.
The Joint Committee also raised the matter of increased taxes in EPZs despite legal protection available to these units, the member IR, FBR briefed the Committee that the tax matter is already under consideration in proposed industrial policy.
In attendance were Syed Masroor Ahsan,Danesh Kumar,Kahlida Ateeb,Mir Dostain Khan Domki,Husna Bano,Mohsin Aziz,Ahmed Khan,Manzoor Ahmed,Muhammad Abdul Qadir,Dilawar Khan and Senior Officials of Government Departments and Representatives of Automobiles sector.
Sohail Majeed is a Special Correspondent at The Diplomatic Insight. He has twelve plus years of experience in journalism & reporting. He covers International Affairs, Diplomacy, UN, Sports, Climate Change, Economy, Technology, and Health.
