Pak Suzuki Motor Company (PSMC), Pakistan’s leading car manufacturer by sales and production volume, finds itself grappling with substantial losses owing to sluggish sales, increased prices, tax augmentations, and import restrictions — common impediments within the auto industry. The government’s reported plans for further tax escalation could potentially intensify the strain on the beleaguered company.
Addressing these concerns, PSMC has penned a letter to the interim Prime Minister of Pakistan, Mian Shahbaz Sharif, requesting him to reconsider the proposed tax hikes.
In the letter, PSMC depicts a grim scenario: “We wish to highlight that PSMC is presently weathering some of the most challenging times in its four-decade-long history. The company has already incurred colossal losses amounting to Rs. 12.9 billion in the first quarter of the ongoing year due to prevailing economic uncertainties. We’ve been observing multiple ‘No Production Days’ every month, perpetuating throughout the year. Furthermore, our dealers and vendors are also bearing the brunt of the current economic and business situation, with some having ceased operations and many more teetering on the edge of closure.”
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Pak Suzuki has urged the Prime Minister not to sanction tax increases on cars up to 1,000cc. This appeal appears judicious, considering the bulk of the automaker’s range comprises cars with engines of 1,000cc or smaller.
The auto industry has voiced its opposition to the government’s plans for escalating taxes in the forthcoming budget. The industry now waits with bated breath for the government’s response to their distress signal.
