ISLAMABAD: Ali Asghar Jamali, the CEO of Indus Motor Company (IMC), highlighted the necessity of raising taxes on used imported automobiles to bolster the regional auto sector.
The Federal Minister for Finance, and Industries, and the head of the Federal Board of Revenue (FBR) met with the CEO of the Toyota automaker to discuss suggestions for the next budget. He noted that to help the local auto industry capitalize on somewhat better economic activity, stable currency, and expected reduction in borrowing rates, an increase in customs and taxes on used automobiles has been proposed in the 2019 budget.
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According to Jamali, the industry anticipated a notable uptick in demand for domestic vehicles starting in January 2024. However, he clarified that it was not caused by the import of secondhand automobiles, noting that local car sales had slightly improved by about 28%. Nonetheless, compared to the same month last year, used automobile imports increased by more than 711 percent in February alone. If the current trend persisted, he said, the suppliers’ industry would be forced to close.
He claimed that in FY2022 alone, the local auto industry invested over $2.5 billion and paid taxes totaling roughly Rs. 400 billion. Approximately 2.5 million direct and indirect work opportunities, he claimed, were offered by the car industry. He claimed that the first quarter performance of the recently released Toyota Corolla Cross, a hybrid electric car, had been satisfactory. With more than 50% of its parts made locally, the Toyota Corolla Cross boasts the greatest percentage of any car in this category.
He said that approval of the auto industry’s suggestions will contribute to a Rs. 80 billion rise in FBR revenue.