https://arab.news/jxvxr
- Stakeholders say taxes on locally produced cars can go up to 43 percent, hampering auto industry’s growth
- Pakistani firms are making several low- and high-tech auto components, seek to meet bigger localization target
KARACHI: Pakistani auto parts and accessories manufacturers urged the government on Friday to reduce taxes on domestically produced vehicles, saying it would help stimulate manufacturing activities and create more job opportunities in the sector.
The appeal was made the chairman of Pakistan Association of Automotive Parts & Accessories Manufacturers Abdul Rehman Aizaz at the inauguration ceremony of the Pakistan Auto Show 2023.
He said nearly 300 companies in Pakistan were producing thousands of components for car manufacturers in the country, providing livelihood to a sizable number of families and making significant contribution to the overall industrial output.
“The government should realize that its treatment of the auto industry as a cash cow by burdening it with taxes ranging between 37 and 43 percent per locally produced car is hampering the growth of the auto industry,” he said.
“Majority of low- and certain hi-tech components of this segment are made in Pakistan,” he continued.
However, he noted this did not mean the country’s localization goal had been met like it had happened with the motorcycle and tractor manufacturing, adding this owed to various reasons that included low volumes and reluctance of international companies to fully transfer the technology.
Aizaz said Pakistan’s per capita car consumption was quite low even when compared with regional underdeveloped countries.
Earlier, the auto show convener, Zain Shariq, said the event was themed around “Synergizing Pakistan” and was organized to highlight the country’s hidden assets in terms of value addition and manufacturing.
He noted that local parts manufacturers were not just confined to auto parts since they were also producing vital industrial components for the defense, aviation and healthcare sectors.
Over 150 companies, including a number of Chinese and Iranian automotive parts manufacturers, are participating in the auto show which will continue until October 29.