Comments on: PAAPAM Urges Tax Cuts to Boost Local Manufacturing https://carspiritpk.com/paapam-urges-tax-cuts-to-boost-local-manufacturing/?utm_source=rss&utm_medium=rss&utm_campaign=paapam-urges-tax-cuts-to-boost-local-manufacturing Pakistan's Trusted Automobile Blog Wed, 01 Nov 2023 04:34:43 +0000 hourly 1 https://wordpress.org/?v=6.7.1 By: Ali Khan https://carspiritpk.com/paapam-urges-tax-cuts-to-boost-local-manufacturing/#comment-14947 Wed, 01 Nov 2023 04:34:43 +0000 https://carspiritpk.com/?p=75174#comment-14947 👏👏 Now we must look into updating and upgrading our localized technology and offer newer more advanced options to our local and export markets. 👍🤞</span> <span>Lastly, like the man said, automobile taxes over all should be reviewed and revised. The auto industry is being damaged badly because it is seen as an easy tax cash cow.</span>]]> “ He added that while majority of low-tech components and certain hi-tech components (of 4-wheelers) are made in Pakistan…”
Right from the horse’s mouth. “Majority of low-tech components”. That is the “50% localization” shtick that the local big three keep on shoving down our throats. 50% but it comprises mostly low tech, low cost parts. All high cost, hi tech components are still imported and that is why their import bills have no end in sight and no way of ever reducing. New auto companies in Pakistan also included.

I agree with him on the point that taxes must be reduced. However, as I have said before, I believe:
1- Increase taxes on the import of those raw materials which are made/available locally while keeping the tax on the locally made raw materials low. This would insure that those raw materials are bought at the lower tax locally and local businesses flourish and grow.
2 – Decrease taxes on those raw material which are not available locally in Pakistan. Either their manufacturing process is not yet established, in which case reduce taxes for a few years to incentivize companies to localize in the given time; or reduce taxes permanently in those cases where we have no choice but to import the raw materials.

By doing this vendors can make cost competitive part for local and export markets, bringing in vital revenue for the nation.

Very glad to hear that we are finally exporting to other nations. 👏👏👏 Now we must look into updating and upgrading our localized technology and offer newer more advanced options to our local and export markets. 👍🤞

Lastly, like the man said, automobile taxes over all should be reviewed and revised. The auto industry is being damaged badly because it is seen as an easy tax cash cow.

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