KARACHI: Pakistan Automotive Manufacturers Association (PAMA) in its statement has complimented Mohammad Ishaq Dar for presenting a fair and equitable national budget 2014-15 despite the many challenges facing the economy.
We commend the efforts of the Honourable Finance Minister and the Chairman FBR to enlarge the tax base and provide a level playing field as these initiatives are likely to spur economic growth, said the spokesman of PAMA.
We welcome the Finance Minister’s decision to reduce the Sales Tax on tractors to 10% and abolish the Federal Excise Duty on vehicles above 1800cc. Both these decisions will boost sales and help increase the revenue on account of higher volume, he added.
The Association appreciates recognition on part of the government to revise the amount of duties on imported used cars fixed in 2005, though in our view the extent of this increase is nominal compared to the increase in price of cars on account of changes in US Dollar and Japanese Yen exchange rate parity. While this measure will help increase the production volume of local cars and capacity utilization of the plants, we urge this duty structure on used imported cars is reviewed again and duties increased equitably, spokesman added.
PAMA spokesman said other concern point is the sales tax paid on services and indirect material or supplies not being allowed against taxable goods. We hope this anomaly is addressed so as not to increase the cost of doing business of our members who are all honest taxpayers. We believe the positive taxation measures proposed in the budget will result in overall increase in volume of domestic production in the automotive industry, leading to increased employment, additional revenue to the Government and in general boost the economic activity in the country, he added.
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