Industry

Auto Industry seeks bailout package following closure of all manufacturing plants

Aftab Ahmed

Islamabad:

Aftab Ahmed

Islamabad:Auto industry has sought host of interventions under relief package from the government.

1. No turn over tax this year.

2. Half of utilities Bill’s from February  to August 2020.

3. On CKD, request for import duties will be 10% from february to December 2020.

4. On AMAX, request for import duties will be 25% instead of 46% from February to December 2020.

5. GST should be reduced by 50% from February to December 2020.

6. Reduction of 75% on witholding and income taxes on Manufacturers Authorized dealers and showrooms from February to December 2020.

7. To complete waive the demurages and detention charges at all ports, i.e land, Air and Sea.

8. To completely withdraw additional 3% additional sales tax.

9. To completely withdraw increase in additional customs duty.

10. To reduce 75% in turnover tax rate on permanent basis.

As all auto plants are shut down due to coronavirus lockdown, auto industry fears worst crisis ahead and is seeking bailout for mother of all industries.

As per directions by the governments, Majority of the Auto Manufacturing plants in Pakistan are closed with effect from 23.3.20. It also includes big plants also such as Indus Motor Company, Honda Cars, Honda motorcycles, Yamaha motorcycles, Pak Suzuki Motor Company Limited, Dysin Automobiles, Millat tractors, Hino etc.

As this Auto industry was also in crises now due to closure they will be in huge trouble and more losses. As in this industry directly and indirectly more than a million persons are employed and engaged for their bread and butter. So, it is requested the Government to arrange some bailout plan also for this Mother of all Industries, THE AUTO INDUSTRY”.

The government is going to announce package for all other industries and auto sector has also come up with a demand to announce bailout package. Auto industry officials say that all sectors like real estate and export oriented sectors were being granted package to keep labour force intact and therefore, auto industry should be given bailout package which was facing worst crisis now.

Before the crisis, the auto industry was already facing crisis due to dip in sales following documentation issues. The government had announced that only filers should be given cars that resulted in cut in sales. Earlier, auto sector clients were 60 per cent non-filers but the sale dropped due to this issue and industry was in crisis.

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