Not so long ago, the Finance Act 2018 was passed in which it clearly mentioned to stop selling vehicles to non-taxpayers. A lot of dilemmas was built around this new clause. Many believed that this will not be brought into practice. While others pleaded to revert the bill and come up with some better solution. Also, there were people who did some brainstorming and suggested some solutions to the court. However, nothing seemed to work and auto assemblers seizing sales to non-taxpayers is actually happening.
The first one in line to obey the new rule is Pak Suzuki Motors Company Limited. One of the leading auto manufacturing company in Pakistan. Pak Suzuki has almost 50% of the market share in the region. However, the authorized dealers of the company have been informed to stop selling vehicles to non-filers. This clearly means that Pak Suzuki will not be taking any more booking orders from people who haven’t paid their tax.
If you think that is the only company following the law you are certainly wrong. One of the dealers of Indus Motor Company also mentioned that they will not be entertaining bookings from non-tax payers. This will be brought into practice from as early as the coming Monday. The decision has been made to avoid any complications for the company which might arise in future.
The cars which will be booked around this time will be delivered in July. Also, Finance Act 2018 need to be brought into practice from July only. The company went a step forward and they even issued a public notice to its customers. In the noticed a request has been made to all the customers. Particularly to those who haven’t paid the tax and have booked the car with delivery due in June. In the notice, the company is requesting the customers to pay the tax. So that the vehicle can be delivered to them without any complications.
Atlas Honda is soon to follow in the footsteps of Pak Suzuki and Indus Motors. The dealers of Atlas Honda have been informed to stop selling cars to non-taxpayers.
All those customers who have booked their orders with delivery due in June are requested to pay tax. In case of failure, the might not only face delayed delivery of vehicle but the order might get canceled as well.
It has been reported that the sales of cars have the declined drastically. The reason for this is no surprise. It is quite clear that number of people do not believe in paying tax in Pakistan.
Approximately 60% of customers or non-taxpayers which is indeed quite a huge number. Yet it is sad to see is that assemblers do not implement laws which are not beneficial to them. Another law was also passed in which these assemblers were strictly restricted from taking premium money. However, the assemblers continue to charge premium price for on spot delivery vehicles. As well as on those vehicles which are to be delivered within 4 to 6 months.