Saturday, June 15, 2024

Motorcycle Assembles Demand GST Reduction to 15%

The Association of Pakistan Motorcycle Assemblers (APMA) has requested the government to lower the General Sales Tax (GST) from 18% to 15% in the upcoming budget for 2023-24. This reduction in tax would provide relief to motorcycle users who are affected by the high exchange rate of the US Dollar in the current economic situation.

Additionally, APMA Chairman Muhammad Sabir Shaikh suggested that all new motorcycle dealers should be registered for sales tax purposes. This would ensure proper tax collection and prevent tax evasion in the industry.

Since motorcycles are classified under the Third Schedule items for sales tax collection, registered dealers should be exempted from submitting monthly sales tax returns, according to Shaikh. Instead, he proposed that quarterly or half-yearly returns would be sufficient, reducing the administrative burden on businesses.

Another concern raised by the industry relates to the alleged misuse of withholding tax policies by officials from the Federal Board of Revenue (FBR). There have been allegations of FBR officials accepting bribes from motorcycle dealers regarding the withholding tax issue for dealers with turnovers exceeding 100 million rupees.

To address this issue, industry representatives suggest that only manufacturers, importers, and wholesalers should be registered as withholding agents. This would prevent potential abuse of the system by traders.

The motorcycle industry plays a significant role in Pakistan’s economy, offering affordable transportation options to millions of people and creating numerous job opportunities. Therefore, it is crucial for the government to take swift action to protect the industry’s sustainability and address the concerns raised by industry stakeholders.

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