New Automobile Policy Aims to End ‘On Money’ Culture
If a company would not deliver the car to the purchaser within 2 months, a penalty equalling 3% of the vehicle price would be imposed on it
In the latest development in the automobile sector, the federal government has announced a new policy which is aimed to omit the role of dealers who rake in thousands of rupees through prevalent ‘on money’ culture.
The purpose of registration in the name of the buyer at the time of booking will eliminate the role of dealers who practice ‘on money’ culture by deliberately delaying delivery of the vehicle.
Addressing a press conference, Industries and Production Minister Khusro Bakhtiar said the prices of different vehicles will decrease accordingly as a result of the tax relief announced by the government.
“It will be also ensured that customers get their vehicles on time. There will be a penalty if the buyers do not receive the vehicle’s delivery in 60 days”, he said.
If a company would not deliver the car to the purchaser within 2 months, a penalty equalling 3% of the vehicle price would be imposed on it.
Besides this, the government has also reduced general sales tax (GST) and federal excise duty (FED) on locally assembled cars particularly the small ones.
Bakhtiar maintained that special facilitation will also be extended to people who are going to purchase a vehicle for the first time.
He added that about 164,000 vehicles were manufactured in the country last year whereas the capacity has reached 300,000 units this year.
Moreover, the price of 660cc cars will reduce by Rs 150,000 and around Rs 142,000 on 1000cc vehicles as the government has waived taxes on small vehicles.
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He said that nearly 2.6 million motorcycles have been manufactured in Pakistan this year whereas the production target of 3 million units will be achieved by next year.
Talking to News360, Toyota Indus CEO Ali Asghar Jamali termed the new policy announced for the automobile sector as ‘progressive’ as it will be beneficial for consumers, dealers, assemblers and all elements in the chain.
He added that the new policy will let the buyer know about the step at which his ordered or booked vehicle is in the production process.
