Car Manufacturers Not Happy Over Budget 2020-21

Pakistan Automobile Manufacturers Association (PAMA) has expressed complete displeasure over Fiscal Budget 2020-21. The association believes that the government did not present any proposal to reduce production costs or to increase car sales in the country. PAMA Director-General Abdul Waheed Khan said that the auto industry was expecting a stimulus package. “The sector was hoping that government will at least slash unnecessary taxes including, Additional Sales Tax (AST), Additional Customs Duty (ACD), and Federal Excise Duty (FED) of 2.5-7.5%, depending on turnover tax and engine displacement,” Khan said.

The chairman further said the government did not even consider the association’s proposals regarding corporate tax, advance tax, or other essential steps. “The industry is currently going through its worst period as sales have dropped from 50% to 80% in different segments,” he said, adding that the auto sector’s revenue collection has seen a downward trajectory in the last 11 months. Khan said the industry has faced hardships due to the government’s regularly changing policies, demand collapse, exchange rate parity, and now COVID-19 pandemic.