Toyota Indus Motor Company (IMC) has once again flagged non-production days (NPDs) in June, adding to the ongoing struggles of the auto sector. The Toyota Indus communicated this development in an official notice to the Pakistan Stock Exchange (PSX), attributing the halt in car assembly from June 3 to June 8, 2023, to inventory shortages.
This announcement comes as the federal government is said to be considering the implementation of a Withholding Tax (WHT) based on the invoice price of locally manufactured automobiles, replacing the current engine-capacity based tax, in the forthcoming budget.
The Pakistan Automotive Manufacturers Association (PAMA) has expressed its concerns over this proposed change. In a letter to the Chairman of the Federal Board of Revenue (FBR), the industry body has warned that this revision could adversely affect sales of locally-assembled cars.
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PAMA appealed to the board to reconsider the proposal, predicting that it would inevitably lead to a surge in retail prices. They further advocated for a reduction in the existing engine-based WHT on vehicles.
Automakers are increasingly anxious about their operational difficulties and fear that the continued challenges may force them out of business. The government has yet to respond to the auto sector’s urgent plea for assistance.
