Toyota and Suzuki the leading auto giants in Pakistan have barred non-filers from booking a vehicle.
Individuals and corporate firms both are included in this. Non-filers have been suspended from buying a vehicle in Pakistan.
The decision has been taken in accordance with Finance Act 2018 bill which prevents non-filers from booking and purchasing new vehicles from July 1, 2018.
Finance Bill FY19 states, “Any application for booking, registration of purchases of a new locally manufactured motor vehicle or first registration of an imported vehicle shall not be accepted or processed by any vehicle registering authority of excise and taxation department or a manufacturer of a motor vehicle respectively, unless the person is a filer.”
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Pak Suzuki has issued a letter to all its authorized dealers and ordered them to stop booking vehicles for the non-filers. The order is effective immediately.
Toyota has also issued a similar notice urging its customers to file for tax.
Toyota IMC notice said, “To avoid any possible delivery delays or cancellations of vehicle orders, we would like to humbly request all of our valued customers to ensure that they change their status as tax-filers. This will enable us to continue delivering our highest level of service to you now and in the future.”
Honda Atlas has not issued any notice yet but as per a dealer soon a notice will be issued by Honda as well. Furthermore, distributors are asked to inform the banks not to accept any orders from the non-filers anymore.
For the vehicle deliveries from July onwards, the customers would have to change their status to a filer. As per industry experts, 60% car buyers are non-filers while the rest are filers. Thus this decision will negatively affect the auto industry. Pakistan Automotive Manufacturers Association (PAMA) even recommended few changes in the budget, otherwise, it can negatively affect the auto industry of Pakistan.