‘Auto sector proposals for curbing premiums ignored by govt’
ISLAMABAD: The auto sector on Thursday regretted that the government has so far ignored proposals to curb premiums at purchase of new cars, leaving manufacturers to take actions to end this practice at the wholesale and retail level.
At the open hearing of ‘Automobile Sector in Pakistan’ held by the Competition Commission of Pakistan (CCP), auto sector representatives said that in the last three years, thousands of investors’ orders have been cancelled where multiple vehicles were booked on the same CNIC.
The hearing was conducted to get the perspectives of all stakeholders on pertinent issues of the auto sector. The CCP bench comprised of its Chairperson Vadiyya Khalil and members Dr Shehzad Ansar and Dr Muhammad Saleem. The hearing was attended by stakeholders including representatives of Federal Board of Revenue (FBR), Ministry of Commerce, Engineering Development Board (EDB), Excise and Taxation, auto manufacturers, Pakistan Automobiles Manufacturers Association, Pakistan Automobile Assemblers Dealers Association, Pakistan Association Of Automotive Parts and Accessories Manufacturers, Pakwheels, car importers and a large number of consumers.
Ms Khalil noted that CCP continues to receive concerns and complaints regarding the pricing of locally manufactured cars and long delays in the delivery of vehicles after bookings, resulting in premiums by the dealers.
Indus Motors CEO Ali Asghar Jamali in his presentation said that company has cancelled orders where authenticity could not be verified. “We regret that the government has not responded to the proposal of imposing a very high transfer tax on new cars as it would eventually curb the practice of charging premium by the dealers,” Mr Jamali said.
He added that staggering import of used vehicles by commercial importers was a gross misuse of the used car import policy and threatened the viability of the local industry.
Representatives of used car importers suggested that government should allow the import of new cars on commercial basis – as opposed to the current practice of transfer under residence and gift schemes — so that the people have more options of choosing cars.
Published in Dawn, April 13th, 2018