Web Desk
The Association of Pakistan Motorcycle Assemblers (APMA) has made a request to the government to reduce the General Sales Tax (GST) from 18% to 15% in the upcoming 2023-24 budget. This measure is aimed at providing relief to motorcycle users who are facing the impact of the high exchange rate of the US Dollar in the current economic situation.
Muhammad Sabir Shaikh, Chairman of APMA, has also proposed that all new motorcycle dealers should be registered for sales tax purposes. This step would ensure proper tax collection and help prevent tax evasion within the industry.
Since motorcycles are categorized under the Third Schedule items for sales tax collection, Shaikh suggests that registered dealers should be exempted from submitting monthly sales tax returns. Instead, he recommends that quarterly or half-yearly returns would be sufficient, reducing the administrative burden on businesses.
Another concern raised by the industry pertains to the alleged misuse of withholding tax policies by officials from the Federal Board of Revenue (FBR). There have been accusations 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 propose that only manufacturers, importers, and wholesalers should be registered as withholding agents. This measure would help prevent potential abuse of the system by traders.
The motorcycle industry plays a crucial role in Pakistan’s economy by providing affordable transportation options to millions of people and creating numerous job opportunities. Therefore, it is essential for the government to take prompt action to safeguard the industry’s sustainability and address the concerns raised by industry stakeholders.
