KARACHI: The car sales of locally manufactured vehicles have increased by 19 percent during first five months (July – November) of current fiscal year owing to lower interest rates and higher demand.
(more…)Category: Automotive
PkRevenue provides stories related to automotive industry. We focus on auto policy of Pakistan. The coverage also includes sales of domestic manufacturing.
-
Car import climbs up by 185 percent in July – October
ISLAMABAD: The import of motor cars has climbed up by 185 percent during first four months (July – October) of current fiscal year 2020/2021 after ease in coronavirus lockdown.
The import of Completely Built Units (CBU) motor cars increased to $58 million during July – October of the current fiscal year as compared with $20.24 million in the same period of the last fiscal year, Pakistan Bureau of Statistics (PBS) said on Wednesday.
Industry experts said that as coronavirus lockdown eased in Pakistan as well as in other countries, the overseas Pakistanis cleared the motor vehicles under various schemes granted by the government.
The commercial import of motor cars is not allowed in Pakistan. However, Pakistanis are allowed to bring motor vehicles under schemes including transfer of residence, gift scheme and personal baggage.
In the past these scheme were grossly misused and the government while taking strict action imposed restriction that clearance of motor vehicles would only be allowed on payment of duty and taxes out of those amount which was remitted into Pakistan with evidence of banking channels.
Related Stories
-
Motor vehicle tax rates for Tax Year 2021
ISLAMABAD: Federal Board of Revenue (FBR) has updated rate of income tax on motor vehicles used for passenger and goods transportation. The income tax rate shall apply during tax year 2021 (July 01, 2020 to June 30, 2021).
The FBR issued Income Tax Ordinance, 2001 (Updated up to June 30, 2020) after incorporating amendments brought through Finance Act, 2020.
The FBR updated rate of income tax on motor vehicles under Section 234 of Income Tax Ordinance, 2001:
Rates of collection of tax under section 234,—
(1) In case of goods transport vehicles, tax of two rupees and fifty paisa per kilogram of the laden weight shall be charged.
(1A) In the case of goods transport vehicles with laden weight of 8120 kilograms or more, advance tax after a period of ten years from the date of first registration of vehicle in Pakistan shall be collected at the rate of twelve hundred rupees per annum;
(2) In the case of passenger transport vehicles plying for hire with registered seating capacity of—
S.No. Capacity Rs per seat per annum (i) Four or more persons but less than ten persons. 50 (ii) Ten or more persons but less than twenty persons. 100 (iii) Twenty persons or more. 300 (3) In case of other private motor vehicles shall be as set out in the following Table, namely:-
S. No. Engine capacity Tax (1) (2) (3) 1. upto 1000cc Rs. 800 2. 1001cc to 1199cc Rs. 1,500 3. 1200cc to 1299cc Rs. 1,750 4. 1300cc to 1499cc Rs. 2,500 5. 1500cc to 1599cc Rs. 3,750 6. 1600cc to 1999cc Rs. 4,500 7. 2000cc & above Rs. 10,000 (4) where the motor vehicle tax is collected in lump sum,
S. No. Engine capacity Tax (1) (2) (3) 1. upto 1000cc Rs. 10,000 2. 1001cc to 1199cc Rs. 18,000 3. 1200cc to 1299cc Rs. 20,000 4. 1300cc to 1499cc Rs. 30,000 5. 1500cc to 1599cc Rs. 45,000 6. 1600cc to 1999cc Rs. 60,000 7. 2000cc & above Rs. 120,000 Following is Section 234 of Income Tax ordinance, 2001
Tax on motor vehicles— (1) Any person at the time of collecting motor vehicle tax shall also collect advance tax at the rates specified in Division III of Part IV of the First Schedule.
(2) If the motor vehicle tax is collected in instalments or lump sum the advance tax may also be collected in instalments or lump sum in like manner.
(2A) In respect of motor cars used for more than ten years in Pakistan, no advance tax shall be collected after a period of ten years.
(3) In respect of a passenger transport vehicle with registered seating capacity of ten or more persons, advance tax shall not be collected after a period of ten years from the first day of July of the year of make of the vehicle.
(4) In respect of a goods transport vehicle with registered laden weight of less than 8120 kilograms, advance tax shall not be collected after a period of ten years from the date of first registration of vehicle in Pakistan.
(5) Advance tax collected under this section shall be adjustable.
(6) For the purpose of sub-sections (1) and (2) “motor vehicle” shall include the vehicles specified in sub-section (7) of section 231B.
-
Car import climbs up by 167 percent in first quarter
ISLAMABAD: The import of motor cars has surged by 167 percent during first quarter of current fiscal year owing to after ease in coronavirus lockdown globally.
The import of Completely Built Units (CBU) motor cars increased to $39.15 million during July – September 2020 as compared with $14.69 million in the same period of the last fiscal year, Pakistan Bureau of Statistics (PBS) said on Saturday.
Industry experts said that as coronavirus lockdown eased in Pakistan as well as in other countries the overseas Pakistanis cleared the motor vehicles under various schemes granted by the government.
The commercial import of motor cars is not allowed in Pakistan. However, Pakistanis are allowed to bring motor vehicles under schemes including transfer of residence, gift scheme and personal baggage.
In the past these scheme were grossly misused and the government while taking strict action imposed restriction that clearance of motor vehicles would only be allowed on payment of duty and taxes out of those amount which was remitted into Pakistan with evidence of banking channels.
-
Car sales increase by 8 percent in first quarter
KARACHI: The sales of locally manufactured cars have registered an 8 percent increase in the first quarter (July – September) 2020/2021 in Year on Year (YoY) basis due to restoration of economic activities after lifting of coronavirus lockdown.
According to statistics released by Pakistan Automobile Manufacturers Association (PAMA) on Monday the car sales went up to 37,017 units during the first quarter of the current fiscal year as compared with 34,308 units in the corresponding quarters of the last fiscal year.
According to analysis by Topline Securities, the car sales have posted an increase of 18 percent YoY in September 2020 to 13,882 units. Indus Motor (INDU) and Honda Car (HCAR) registered sales increase of 106 percent YoY and 87 percent YoY, respectively.
However, Pak Suzuki Motor Company (PSMC) sales declined by 20 percent YoY due to drop in Alto’s sales by 37 percent YoY (last year Alto saw high numbers due to its recent launch).
Car sales also increased by 19 percent MoM in September 2020. The increase was driven by INDU’s increase of 32 percent MoM as Yaris sales picked up 42 percent MoM. HCAR sales also improved by 20 percent MoM as BRV sales increased by 50 percent MoM.
New entrants into Pak Auto space continue to perform well with Hyundai Nishat selling 316 units (+187 percent MoM) in September 2020, while Kia Lucky Motors (KLM, non-member of PAMA) sold around 1,500 units
KLM is also planning to shift to double-shift production from January 2021 to meet high customer demand.
Hyundai Nishat had launched Tucson in the SUV category last month. A strong market response is visible as the number of units have jumped to 215 in September 2020 from 22 last month.
Atlas Honda (ATLH) recorded motorbike sales of 109,002 units in September 2020, up 45 percent YoY. In 1QFY21, sales have increased by 22 percent YoY.
Tractor sales in September 2020 are up 12 percent YoY, while also increased by 49 percent MoM. Millat Tractors (MTL) recorded an increase of 69 percent YoY while Al Ghazi Tractors (AGTL) sales declined by 31 percent YoY, respectively.
The analysts expect demand for cars to grow stronger owing to lower interest rates for auto financing along with pickup in economic activity amidst declining cases of COVID-19.
-
Tax to apply on sale of used cars only on value addition: FBR
ISLAMABAD: Federal Board of Revenue (FBR) on Saturday said that sales tax is applicable at 17 percent on sale of used cars only on value addition.
Clarifying news reports regarding levying of 17 percent sales tax on resale of used and refurbished vehicles, the FBR said that the existing law charged sales tax on full sale value which was harsh and excessive.
On the request of business community who are engaged in such business and after seeking support of major chambers of commerce of the country, a clause was added in the Finance Act to provide relief and to encourage refurbishing of second hand vehicles.
This relief is available to only registered persons in sales tax and is restricted to 17 percent of value addition made by such players.
No unregistered person can deduct or demand such sales tax from a buyer. It is further clarified that only rules have been finalized now.
-
Policy to import used/old cars under various schemes unveiled
ISLAMABAD: The ministry of commerce has unveiled the policy to import new and old/used cars under Import Policy Order, 2020. The ministry issued SRO 902(I)/2020 dated September 25, 2020 to notify the Import Policy Order, 2020 and explain the policy to import motor cars under various schemes.
(more…) -
Car import surges by 180 percent
KARACHI: The import of motor cars has increased by 180 percent during first two months of current fiscal year due to normalization of life after lifting of corona lockdown.
The import of motor cars was at $26.53 million during July – August 2020 as compared with $9.46 million in the corresponding period of the last year, showing an increase of 180 percent.
The commercial import of motor cars is not allowed in Pakistan. However, under different schemes such as personal luggage, gift and transfer of resident schemes the overseas Pakistan can bring motor cars in Pakistan.
In the past these scheme were grossly misused and the government while taking strict action imposed restriction that clearance of motor vehicles would only be allowed on payment of duty and taxes out of those amount which was remitted into Pakistan with evidence of banking channels.
The import of motor vehicles in completely built units (CBU) including motor cars recorded an increase of 151 percent to $47.18 million during first two months of current fiscal year as compared with $18.76 million in the same period of the last fiscal year.
-
Car sales climb up by 16pc in August
KARACHI: The sales of locally manufactured cars have recorded 16 percent increase to 11,678 units in August 2020 as compared with 10,102 units in the same month of the last year.
According to data released by Pakistan Auto Manufacturers Association (PAMA) Indus Motor (INDU) and Honda Car (HCAR) registered sales increase of 52 percent YoY and 72 percent YoY, respectively. However, Pak Suzuki Motor Company (PSMC) sales declined by 9 percent YoY.
Analysts at Topline Securities said that Kia Lucky Motors (non-member of PAMA) continued to perform well and is also planning to shift its production to double shift from Jan-2021 to meet high customer demand. As per our channel checks KIA sold around 1500 units for August 2020.
Another new entrant Hyundai Nishat launched Tucson in SUV category during the outgoing month and successfully sold 22 units along with 88 units of Porter H-100 (a commercial pickup).
Moreover, car sales increased by 1 percent MoM in Aug-2020, in which major increase was reported by PSMC with 20 percent MoM rise, however INDU and HCAR reported declines of 18 percent MoM and 8 percent MoM, respectively.
Atlas Honda (ATLH) recorded motorbike sales of 85,000 units in Aug-2020, up 6 percent YoY. However, sales declined by 10 percent MoM.
Tractor sales in Aug-2020 are up 12 percent YoY, while down by 21 percent MoM. Millat Tractors (MTL) recorded increase of 80 percent YoY while Al Ghazi Tractors (AGTL) sales declined by 51 percent YoY, respectively.
We expect demand for cars to grow stronger as lower interest rates for auto financing along with pickup in economic activity amidst declining cases of COVID-19 has revived demand for new cars.
-
Pak Suzuki declares half year loss of Rs2.46 billion
KARACHI: Pak Suzuki Motor Company Limited has reported a significant loss of Rs2.46 billion for the first half of 2020 (January to June), as per the financial results submitted to the Pakistan Stock Exchange (PSX) on Wednesday. This represents a 61.44 percent increase in losses compared to the Rs1.52 billion loss recorded in the same period last year.
(more…)