Finance ministry may resolve taxation issues of automotive industry

Finance ministry may resolve taxation issues of automotive industry

KARACHI: A standing committee of the National Assembly has assured that finance ministry to convene an exclusive meeting for resolving taxation issues of automotive industry.

The National Assembly standing committee paid its visit to Pak Suzuki Motors under the chairmanship of Sajid Hussain Turi on Wednesday.

The Committee informed that an exclusive meeting may be convened with FBR, and Ministry of Finance to resolve the problems of Additional Customs Duty, Federal Excise Duty, Additional Sales Tax, shortly.

During the visit the management of Pak Suzuki Motors welcomed the Members and senior officers of GOP, at Suzuki Head office.

The committee witnessed the manufacturing of different vehicles in the plant under the supervision of well experienced team of Pakistani and Japanese Suzuki engineers and workers.

The committee members expressed their well wishes for the Improvement of Pak Suzuki plant which was established in 1992, after visiting the plant.

The Managing Director, Pak Suzuki Motors, Pakistan warmly welcomed the Committee. Shafiq Shaikh, head of Public Relations and official spokesperson briefed the Committee about the historical background of the institution.

He appraised the Committee with regard to different Cars launched by Suzuki Motors time to time in Pakistan, including some imported vehicles and newly introduced cars.

The Managing Director, responded the questions raised by the Members regarding quality of products as compared to imported vehicles, the Committee expressed its satisfaction in this regard.

Shafiq Shaikh explained the causes of increase in prices. He said high mark up rates of Banks loans, over burden of taxation, several additional duties, rupee devaluation, increase in fixed costs / utilities, high trend of inflation and non implementation on Automotive Development Policy(ADP) 2016-21 were the major reason of low production in the automotive sector, which also caused the price fluctuation in the market. Additional Secretary, Ministry of Industries informed that taxation matters were taken up earlier with Ministry of Finance and Revenue but they didn’t respond properly in that regard in last financial year.

The Committee appreciated the role of Pak Suzuki Motors , Management and appreciated Harano, MD and Shaikh for providing the good quality/ standards products in Pakistan and launching of new models of cars and Motorbikes.

Several members along with senior officials from ministry of industries, EDB and PSM attended the meeting.