In a briefing to the National Assembly Standing Committee on Finance, representatives from the Indus Motor Company and Honda Atlas Cars blamed the government’s taxation and exchange rate policies for the continued increase of prices of automobiles.
As per the facts and figures presented by the company reps, the government has to be held accountable for more than 50-70% increase in automobile prices. In what seems to be a very shocking revelation, according to automotive manufacturers, Electric Vehicles are 140% more expensive than conventional cars despite the government announced tax reductions and EV policy. This revelation comes on the heels of the announcement that PM Imran Khan is going to meet Tesla executives for a possible launch of Tesla vehicles in the country.
As per Baber Khan, IMC Head of Corporate Affairs, Electric vehicles for Pakistan did not make any sense. The government should review its tax structure and promote hybrids as electric vehicles. According to him, “Hybrid car is 15% expensive than the conventional car and the fuel cell (electric) vehicle is 140% more expensive than the conventional car.”
Approximately 35-42% of the car’s total value is accounted by tax as per Ayaz, General Manager of Engineering Development Board which shows a dire need to fix the tax structure if the prices of automobiles are to be brought down. Honda Atlas, for instance, had a profit of 146 million in the last six months however it paid up to Rs 6.4 billion in taxes to the government.
FBR officials which were also present in the meeting didn’t contest the claims made by both companies.
Source: Express Tribune