ISLAMABAD, Sept 17: The government on Wednesday expanded the task force on car prices engaging Monopoly Control Authority (MCA) and National Tariff Commission (NTC) in the probe and also initiated an official study to see how local car prices compared with those in India, Dawn has learnt.

The decision was taken by the task force comprising federal secretaries of industries, commerce, additional secretary finance and chairman CBR following refusal by the Pakistan Automobile Manufacturers Association to provide details of cost of production per car and prices of CKD kits.

The task force meeting on Wednesday also considered to make it mandatory to book and register new cars on the basis of national tax numbers (NTNs) and the restriction on transfer of registration for one year to reduce the element of middleman and premium on factory prices. It also considered to stop release of cars on the basis of balloting.

A car manufacturer who requested not be identified told Dawn that the task force had sought information relating to very confidential areas of their production process which could not be provided to the government because it could go into the hands of their competitors.

He said the government was contacting all manufacturers separately seeking very technical information but no manufacturer has shown any inclination so far to share this information with the officials.

He said the government has been told that general information relating to prices of various parts and overall cost of production was already available with the Engineering Development Board (EDB).

The task force has decided that the industries ministry should conduct a study of its own to compare local car prices with those of India’s. It also set two parameters for the study. The study should take into account the rupee parity which was Rs46 and Rs58 against a dollar in India and Pakistan respectively. It would also calculate the impact of general sales tax which was nine per cent in India and 15pc in Pakistan.

The MCA and NTC would attend the task force meeting on Sept 20. The calculations of the ministry of industries, MCA and NTC would be compiled together and a report would be prepared on Sept 22 which would then be discussed with the manufacturers.

A final report of the task force would be submitted to the federal cabinet for a decision by September 30.