The automobile industry of
COVID-19 brings further trouble for automobile industry in PakistanMajority of automobile manufacturing plants have stopped production and have remained closed since
The plants that have stopped production include
interesting reading: President of
Earlier, in the first eight months (Jul-Feb) of current fiscal year, automobile sales dived 44% to 90,834 units compared to 162,240 units in the same period of previous fiscal year. On the other hand, sales of trucks, motorcycles, jeeps and pickups also fell in the period under review.
He added that more than a million people are directly and indirectly employed in the automobile sector, therefore we request the government to draw up a separate plan for this sector.
He suggested that under the package, the government could eliminate the turnover tax for the ongoing year and slash utility bills to half from February to
interesting reading: Locust: An alarming threat to Agriculture in
He also requested the government to cut import duty to 10% on completely knocked-down (CKD) units for February to
He further requested that we also propose a reduction of 75% in withholding and income taxes applicable to manufacturers, authorized dealers and showrooms from February to
His comments came as Prime Minister
interesting reading:
The
Prior to the outbreak of COVID-19 the rupee devaluation was the main reason behind the deteriorating situation of the auto sector as it turned auto parts and raw material expensive, thus raising the cost of production of carmakers. Initially, the companies bore the additional cost, however, later they passed it on to customers, which severely impacted their sales.
In addition to that, a steep interest rate hike had also gravely impacted the automobile sector as car leasing became costlier, which discouraged people from purchasing vehicles.
© Pakistan Press International, source