PAMA Displeased with Budget 2020-21

PAMA Displeased with Budget 2020-21 1

Pakistan Automobile Manufacturers Association (PAMA) is displeased over the absence of measures to bring down the cost of production or to enhance vehicle sales in the recently announced Financial Budget 2020-21.

Related: Auto Assemblers Seeking Stimulus Package from Government

According to PAMA Director General Abdul Waheed Khan, the auto industry was expecting a stimulus package at least in the form of withdrawal of unnecessary and avoidable taxes such as Additional Customs Duty (ACD), Additional Sales Tax (AST), Federal Excise Duty (FED) of 2.5-7.5% depending on engine displacement and the turnover tax. While the budget had nothing in this regard, he said the government did not even consider the association’s proposals regarding the advance tax under Section 148 or corporate tax or other important measures.

PAMA Displeased with Budget 2020-21 2

The local auto industry is going through the worst period ever with sales reduced by 50% to up to 80% in various segments during the 11 months of the current fiscal year leading to depleted revenue collection.

Related: Toyota Hilux Revo and Isuzu D-MAX Prices to Increase Under Budget 2020-21

Abdul Waheed Khan added that the auto industry has suffered due to frequent policy changes and other factors like exchange rate parity, demand collapse and the recent COVID-19 lock downs. He said:

“The government should have announced a stimulus package in Budget FY2020-21 to revive the auto industry.”

Related: Car Sales Declined by 75% in May Amid COVID-19 Lockdowns

According to former chairman of Pakistan Association of Automotive Parts and Accessories Manufacturers (PAAPAM) Mashood Ali Khan, said the budget has not provided any relief to the ailing auto sector. He said the government should have abolished ACD, AST and FED to bring down vehicle prices however the budget has nothing for auto manufacturers. Mashood warned that manufacturers would face hard times in coming months in absence of any relief from the government and sluggish demand. He added:

“While existing assemblers and vendors will suffer badly due to falling sales and lack of support from the budgetary measures, Pakistan is unlikely to witness any fresh investment as the budget lacks any incentives.”

It is pertinent to mention that local auto assemblers had sought immediate government attention including a stimulus package to deal with the impact of the coronavirus pandemic and massive slowdown in vehicle sales. However the government has shown a cold shoulder to these demands.

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About UsmanAnsari

A 3d animation professional with over 19 years of industry experience, an avid car enthusiast, petrolhead and social media influencer. Formerly written for PakWheels as well as major publications including Dawn. Founder of CarSpiritPK.com

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TiredOfThisShit
TiredOfThisShit
3 months ago

“While the budget had nothing in this regard, he said the government did not even consider the association’s proposals regarding the advance tax under Section 148 or corporate tax or other important measures.”

Glad someone attending to them in the government has his/her head screwed on straight up top.

TiredOfThisShit
TiredOfThisShit
3 months ago

“The local auto industry is going through the worst period ever with sales reduced by 50% to up to 80% in various segments during the 11 months of the current fiscal year leading to depleted revenue collection.”

All due to excessive profiteering and lack of foresight to do significant localization.

TiredOfThisShit
TiredOfThisShit
3 months ago

“According to former chairman of Pakistan Association of Automotive Parts and Accessories Manufacturers (PAAPAM) Mashood Ali Khan, said the budget has not provided any relief to the ailing auto sector. He said the government should have abolished ACD, AST and FED to bring down vehicle prices however the budget has nothing for auto manufacturers.”

How about PAPAAM start exporting parts by becoming part of global supply chains through quality improvement instead of limiting itself to local vehicles parts manufacturing and start pressurizing PAAA/PAMA to reduce excessive profiteering by raising prices and increasing localization to bring down amount/cost of imported parts?

Akram Durrani
Akram Durrani
3 months ago

cry babies.. never did anything to improve themselves & always dependent on govt support even after more then 25 years. shame on you Pama