Sales tax on cars

The recent surge in the rate of general sales tax (GST) by 25 per cent on 1,400cc cars, coupled with currency devaluation, has dealt a severe blow to the local automobile industry. Sales have plummeted by 30pc, affecting manufacturing and employment. This decline translates to decreased tax revenue, while energy prices and financing rates continue to soar. With over 40pc taxation on each local car sold, it is only logical to assume that imported cars will become a priority for the buyers. The customers would be greatly benefitted if the authorities reconsider such policies, engage in a dialogue, and seek sustainable solutions that foster growth rather than stifle it.

QASIM HAIDER

KARACHI