According to a report by Baaghi TV, a sub-committee of the National Assembly’s Standing Committee on Industry and Production called for an agreement between the government and car manufacturers. The committee also sought a three-year tax record and financial statement from the FBR, while recommending that the SECP conduct a special audit of car manufacturers. The sub-committee met under the chairmanship of Riaz-ul-Haq at Parliament House yesterday. Dr. Hamid Atiq Sarwar, Additional Secretary, Ministry of Industries and Production, while briefing the committee on the increase in vehicle prices, said that the companies had informed him that the depreciation of rupee and increase in taxes had led to increase in prices. Officials from the Engineering Development Board told the committee that some taxes had been imposed which were opposed by the EDB. There are taxes ranging from Rs 12 to 14 lakh on a car worth Rs 40 lakh. 17% GST and 5% FED is applicable. Taxes on raw materials are also paid in the same proportion. Only by reducing the tax rate can the rise in prices be controlled. Chairperson Competition Commission Rahat Koneen told the committee that it has been 37 years since the car manufacturers came to Pakistan, … Continue reading Why pay tax worth 12 lakhs on a car that already costs 40 lakh?