In the next budget for 2023–2024, the Association of Pakistan Motorcycle Assemblers (APMA) has asked the government to reduce the General Sales Tax (GST) from 18% to 15%.
Motorcyclists who are impacted by the high US Dollar exchange rate in the current financial climate would benefit from this tax cut.
Additionally, Muhammad Sabir Shaikh, the chairman of the APMA, advised that all new motorbike dealers register with the state to collect sales taxes.
This would guarantee accurate tax collection and stop tax evasion in the sector.
According to Shaikh, registered dealers should not be required to submit monthly sales tax returns because motorbikes are Third Schedule commodities for the purposes of sales tax collection.
He suggested that instead, quarterly or semi-annual returns would be adequate, easing the administrative load on firms.
The business has also expressed worry over the alleged abuse of withholding tax laws by Federal Board of Revenue (FBR) employees. Regarding the subject of withholding taxes for motorbike sellers with turnovers over 100 million rupees, there have been allegations that FBR employees accepted bribes from motorbike dealers.
Industry representatives propose that only producers, importers, and wholesalers be registered as withholding agents in order to address this problem.
This would stop traders from perhaps abusing the system.
Millions of people in Pakistan have access to economical mobility choices because to the motorcycle sector, which also generates a large number of work possibilities.
Therefore, it is imperative that the government move quickly to safeguard the industry's viability and solve the issues brought up by industry stakeholders.
Comments
0 comment