What happened: To protect local assemblers from international competition, the government has increased tax on imported cars by up to 500%. The assemblers, however, have transferred the suffering to the customers by overcharging them and delaying deliveries by up to a year. Details: The Public Accounts Committee (PAC), a parliamentary oversight body, was in session when the news was announced. It prompted the committee to urge examining the excessive protection aiding the aforementioned corporations in defrauding consumers. The PAC proposed that the government should stop referring to them as “manufacturers” and start referring to (and treating) them as “assemblers.” They believe this recommendation should become a legislation. What you need to know: The lawmakers also questioned automakers and government ministries over their collection of billions of rupee advances for unfulfilled orders. According to the Secretary of Industries, Indus Motors had received Rs. 112 billion in advances at the end of the previous fiscal year, Honda Atlas had received Rs. 23 billion, and Pak Suzuki Motors had received Rs. 41.7 billion. What’s next: The PAC recommended that the government should decrease taxes on imported cars with 800cc to 1,300cc engines in order to promote competition if the companies do not shorten the delivery time. In addition, it requested the FBR to check the accounts of the car assemblers and urged the government to raise the three-year import age restriction to five years.
