Comments on: Government Considering to Reduce Taxes to Alleviate Price Hikes https://carspiritpk.com/government-considering-to-reduce-taxes-to-alleviate-price-hikes/?utm_source=rss&utm_medium=rss&utm_campaign=government-considering-to-reduce-taxes-to-alleviate-price-hikes Pakistan's Trusted Automobile Blog Wed, 18 May 2022 03:30:40 +0000 hourly 1 https://wordpress.org/?v=6.7.1 By: Ali Khan https://carspiritpk.com/government-considering-to-reduce-taxes-to-alleviate-price-hikes/#comment-10537 Tue, 17 May 2022 14:43:02 +0000 https://carspiritpk.com/?p=52439#comment-10537 ]]> In reply to TruongNguyen.

No scrutiny of the practices of the auto assemblers. No investigation of their CKD and CBU costs (such investigations seem only reserved for MG). No internal investigation or study to calculate the costs of the assembled or imported vehicles and what they are being sold for in the local market to get a very clear idea of the assemblers’ profit margins.

No comparisons of the prices of local stripped out vehicles with their selling prices in other nations. Good example can be the Civic RS. With 8 airbags and more options and features it is around 58 lac PRK (when converted from Philippine Pesos) in the Philippines. On top of that the civic IS AN IMPORT IN THE PHILIPPINES JUST LIKE ALL THEIR CARS. In Pakistan it is local assembled and is almost 67 lac PKR. Isn’t local assembly suppose to bring prices down? Any thoughts from the assemblers or the government? Do they even know?

Whatever lies are fed to the government agencies or committees or what not, by the local assemblers, the government is only too happy to accept. Otherwise that would mean doing actual work!!!😱

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By: TruongNguyen https://carspiritpk.com/government-considering-to-reduce-taxes-to-alleviate-price-hikes/#comment-10536 Tue, 17 May 2022 08:54:45 +0000 https://carspiritpk.com/?p=52439#comment-10536 ]]> A very stupid and unprofessional solution to this problem. It’s like the government didn’t even choose to take a peek at what’s causing the problem, they are just going to “reduce the taxes” like every time!

Only problem is we have seen what happened when the government reduced taxes; NOTHING! The cars got even more expensive and that tax “relief” barely did anything because it’s not the taxes that are causing these rampant price increases! 🙄

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By: Reduction of taxes on used imports https://carspiritpk.com/government-considering-to-reduce-taxes-to-alleviate-price-hikes/#comment-10535 Tue, 17 May 2022 08:49:15 +0000 https://carspiritpk.com/?p=52439#comment-10535 Government should consider opening up the used orphaned JDM imports to control the CAD and to gain money from taxes. They can allow cars at least 5 years old and at most 8 years old to be imported. They’re gonna be cheap and older gen and not to compete with the existing latest gen local offerings in terms of tech, shape or price.

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By: Ali Khan https://carspiritpk.com/government-considering-to-reduce-taxes-to-alleviate-price-hikes/#comment-10532 Tue, 17 May 2022 07:17:11 +0000 https://carspiritpk.com/?p=52439#comment-10532 In reply to Khurram.

WOW! you just turned the topic of supply chain management on its head! Instead of using terms that you clearly vaguely understand, please study the topic first.

By your understanding, what are the core skills of Pakistan? agriculture? driving a bolan or ravi or mehran? What about weapons manufacturing such as handhelds, or missile technology or aircraft manufacture? I think we have a very diverse and respectable skill set.

Just because the desi japs decide not to do a business activity, they suddenly convince us that it is due to our short comings. The fan boys only too willing to accommodate their flawed rhetoric. We have been doing assembly for the past thirty years. I think that has become one of our core skills in the auto sector.

Changan has recognized that and has become the first to properly establish an assembly line here to export their new SUV, the Oshan x7, to other RHD markets. If not then why did they waste precious time and money establishing that assembly plant. It will be hopefully the first of many Chinese auto companies to make Pakistan the assembly hub for their vehicles and only through the skill of assembly, bring revenue to the nation. We have the skill and they recognized it. That is why they are doing what they are doing. Promoting mutually beneficial auto exports. Something so very simple which has eluded the desi japs for the past thirty years. They have only increased Pakistan’s auto sector spend.

What about our parts manufacturers who have been operating here for decades or Pakistan having one of the leading vehicle armoring setups in the region? It is just that the old assemblers never let the parts manufacturers expand beyond a limited amount and they were never encouraged to go international. The government did not help either by not recognizing the parts vendors’ international revenue generating potential for the nation.

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By: Khurram https://carspiritpk.com/government-considering-to-reduce-taxes-to-alleviate-price-hikes/#comment-10530 Tue, 17 May 2022 03:50:04 +0000 https://carspiritpk.com/?p=52439#comment-10530 The tax rates were raised after few months of reduction coming into effect. Anyway, instead of playing with taxes, the government must work with people and increase exports of Pakistan, through application of the country’s core skills (primary level supply chain). Auto sector being a secondary level supply chain is based on non-core skills and policies cannot help it get better unless base skills required for making cars are achieved. In addition, the government cannot rid society from on culture unless car customers themselves choose to say no to it; even from logic, one cannot stop another if the other is intent on doing something knowingly.

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