25% Sales Tax Could Kill Auto Industry: PAMA
By Omar Faruq On Feb 19, 2024
https://www.pakwheels.com/blog/25-sales-tax-could-kill-auto-industry-pama/

More sensationalism!
Just a few % tax hike would *kill* the “lamb that has been ever-surviving despite being slain continuously”.
For the past 40 years for every single day these PA(JA)MAs have been seeking news coverage which portrays them as a damsel in distress perpetually in the need of government assistance. 40×365+11=14611 days of crying wolf but never actually dying.

The auto industry will never die since transport is a basic need, price-inelastic commodity. But some auto industry players sure need to die. They make a lot of noise while delivering meager value. Incompetence is unsustainable.

Well well well someone just got carried away.
Mass hysteria is in order now. You can blame the gross tactics of the auto industry mafia or the way it is being highlighted in social media – some people will criticize too much and will forget what who and why they are criticizing.

Which is coincidentally what is being discussed about the automotive industry on CSPK.

This is a good channel, other videos about other topics are also useful.

i think you are mixing PAMA and PAPAAM

“a situation of negative protection”

“undermine investor confidence in Pakistan”

How can they say these things in a single breath? Are they patient of some mental disease that they are incapable of coherent thought?
As if investor would be confident in investing in an industry which is so failure-prone it cannot survive without help from others. If the industry has no leg to stand upon and is surviving only because of some favourable but unsustainable policy, what will happen the day the policy will discontinue? Cease and desist?
On one hand these industrialists love capitalism when they get to fleece the consumer and buy shiny things for themselves. On the other hand they love regulation when they get to strangle other industries and businesses and receive handouts from the government.

Instead of increasing their internal strength, they are always trying to reduce others. Classic symptoms of narcissistic personality disorder.

“the market share of used cars has risen from 10% to 30%”

Oho how come? The number of cars imported is going down just the same as the numbers of the locally “assembled” cars.

Basically they wrote the whole letter for this line. The other words are just wrapping paper for the “actual goods”.

It has been said time and again that PAMA makes spare parts, so they shouldn’t worry whether local car is sold or imported. Cars will keep needing spares and they can make spares for the market that exists. JDM owners are always scouring junkyards for spares so is PAMA blind towards that market opportunity?
In Pakistan people have poor boundaries and discuss matters that do not pertain to them nor do they affect them. The same happens in relationships and the same happens in business and politics. Similarly PAMA always discusses the imports even though it shouldn’t affect them, sure they’ll need to adjust themselves to make more types of spare parts but business innovation is the only thing that mitigates business risk.

According to PAMA, the market share of used cars has risen from 10% to 30%, causing a loss of foreign exchange and legitimate revenue for the government.

used car imports causing a loss of foreign exchange? seriously? like how? what about the massive foreign exchange loss on ckd imports? why always cry about used cars, which are 660cc or 1000cc mini cars, which they are never going to launch?