LAHORE - Pakistan Association of Automotive Parts & Accessories Manufacturers Chairman Syed Nabeel Hashmi has termed the Budget 2012-13 normal, as under the circumstances its not very bad.
Whilst commenting on the Budget, he stated that changes in the income tax and sales tax regimes are welcome. We are happy to see Rs 10 billion allocated for export promotion activities. We hope that now substantial amount shall be allocated to the Engineering and auto sector. Reduction of withholding tax from 1% to ½% on export proceeds shall further encourage exporters. We also welcome Hybrid vehicle tariff changes that may allow green vehicles into Pakistan.
"Our strong demand to insure sales tax at auto parts markets and retail stage has once again not being implemented," he added.
Further control on import of used cars regime that has so far taken away over 22,000 jobs from the Pakistan automotive industry is regretted. Some of the extensive proposals given to the government for enhancement of revenues including corrections of US$ import values of used cars remain unchanged which is very surprising. How can seven years old values still be used to assess values of now expensive vehicles.
Many of the details are still being reviewed and the association shall further comment on the same once a detailed review is completed, he said.