Motor Dealers Request Government to Decrease Withholding Tax

Photo Credit: Pakwheels

Through an inside information, the All Pakistan Motor Dealers Association has requested Ishaq Dar, the Minister of Finance to amend the withholding tax policy which applies on transferring and registration of vehicles.  The request was made by the H.M Shahzad, Chairman of APMDA through a letter to Finance Minister. The Chairman addressed to Government's recent policies for the fiscal year-2014-15 which would not attract buyers towards used vehicles in Pakistan. It is also worth-to-note that import duties has also been increased by the Govt. in the budget. The new taxation measure by the Ministry of Finance would surely be not a good sign for buying used vehicles.

This situation can cause big disappointment in the used cars business in the country. In his letter, the APMDA's chairman said:

It seems that the government is penalizing the public for buying cars.

He further stressed that sooner or later buyers would feel their pocket hard to buy a used car since government's return will decrease instead of increase.


Further referring to the letter, it has been said that buyers with nominal liability of taxes would bother themselves to a number of messes that occur in getting back a refund from government.
In result of this development, the consequences should not be taken as normal by the concerned authorities because at the end of the day, the increase in duties and taxes will not be in interest of anyone even of government. Those who buy a used car, would drive on authority letter instead of a transfer. Mr. Shahzad also told the Finance Minister that it can stop people buying taxes which may arise too many corruption in Pakistan.

The APMDA's chairman given another fact in his letter:

In the absence of public transport services, a car is a necessity not a luxury.

It is therefore necessary that government should take positive measures to decrease WHT on transfer and  registration fees to encourage buyers of used cars.