Ali Asghar Jamali, the Chief Executive Officer of Indus Motor Company (IMC), has emphasised the need to increase taxes on used imported cars to support the local automotive industry. In meetings with the Federal Minister for Finance, the Minister for Industries, and the Chairman of the Federal Board of Revenue (FBR), Jamali presented proposals for the upcoming budget.
Jamali recommended increasing duties and taxes on used cars, arguing that this measure would benefit the local auto industry amidst the slightly improved economic activity, stable currency, and anticipated cuts in interest rates. He highlighted that despite expectations of a significant increase in demand for locally manufactured cars from January 2024, this demand did not materialise, largely due to the influx of used car imports.
He noted a 28 percent improvement in the sales of local cars but pointed out that the import of used cars surged by over 711 percent in February alone, compared to the same period last year. Jamali warned that if this trend continues, it could force the closure of the vendors’ industry, which plays a crucial role in the local automotive supply chain.
Jamali underscored the substantial investments made by the local auto industry, amounting to approximately $2.5 billion, and its significant contribution of about Rs400 billion in taxes during the fiscal year 2022. He also highlighted the industry’s provision of around 2.5 million direct and indirect job opportunities.
Discussing the performance of the newly launched hybrid electric vehicle, the Toyota Corolla Cross, Jamali noted that its first-quarter performance has been satisfactory. He emphasised that the Toyota Corolla Cross boasts the highest percentage of localised parts in its category, exceeding 50 percent.
Jamali concluded by stating that accepting the auto industry’s proposals would help increase FBR revenue by Rs80 billion, thereby providing a substantial boost to the national economy.