Indus Motor Company (IMC) has announced that there will be no layoff of employees despite a slowdown in production. According to an IMC spokesperson:
“The country is going through an economic slowdown and the overall market has remained volatile. This has indeed been a great struggle. The factors largely contributing to this include rupee depreciation, reduction in car financing, increase in federal excise duties (FED) and higher input costs. Yet, we have decided not to go for layoffs despite the hard times. We are absorbing this financial crunch.”
The IMC spokesman mentioned that the rupee has depreciated over 31.6% while the government has also imposed 7% additional conveyance duties, 3% additional sales tax on all imports and 2.5% to 7.5% FED on various engine capacity vehicles.
All this is having an adverse impact on the auto sector and has resulted in a major decline in sales. Of the total cost of a vehicle, 40% comprises the taxes and levies imposed by the government. The decline in sales will result in a substantial decline in tax collection from the auto sector, he added.