No Result
View All Result
Sunday, June 1, 2025
MM News
اردو
  • Home
  • Latest News
  • Showbiz
    Gen V Season 2

    Prime Video drops teaser trailer, confirms Gen V Season 2 premiere for September 17

    Arshad Warsi

    Arshad Warsi and wife face 5-year ban: Will he also disappear from films?

    Deepika Padukone

    In pictures: What are the shocking controversies in Deepika Padukone’s past?

    Hania Amir

    Yashma Gill proposes to Hania Aamir: Her hilarious reply goes viral

    Image: AP

    In Pictures: Thailand’s Opal Suchata Chuangsri crowned Miss World

    Gigi and Bella Hadid

    The Hadid sisters have a stepsister? Here’s what we know

  • Thought Box
  • Business
  • Opinions
  • Technology
  • The Other Side
MM News
  • Home
  • Latest News
  • Showbiz
    Gen V Season 2

    Prime Video drops teaser trailer, confirms Gen V Season 2 premiere for September 17

    Arshad Warsi

    Arshad Warsi and wife face 5-year ban: Will he also disappear from films?

    Deepika Padukone

    In pictures: What are the shocking controversies in Deepika Padukone’s past?

    Hania Amir

    Yashma Gill proposes to Hania Aamir: Her hilarious reply goes viral

    Image: AP

    In Pictures: Thailand’s Opal Suchata Chuangsri crowned Miss World

    Gigi and Bella Hadid

    The Hadid sisters have a stepsister? Here’s what we know

  • Thought Box
  • Business
  • Opinions
  • Technology
  • The Other Side
No Result
View All Result
No Result
View All Result
MM News
اردو
  • Latest
  • Showbiz
  • Thought Box
  • Business & Stock
  • Opinions
  • Technology
  • The Other Side-Pakistan
Home Opinion & Editorial Opinion

Reducing car prices

Nadeem Moulvi by Nadeem Moulvi
July 10, 2021

The decrease in the prices of vehicles comes as a massive relief to customers who desire to buy a new car. The government has once again given a huge tax incentives to the auto sector, but as we have seen in the past, the benefits have never been passed on to customers nor does it impact the economy.

The automotive sector is one of the major industrial sectors of Pakistan and has the potential to change the economy. The government controls business activities in the country but the powerful auto industry has always manipulated policies for their vested interests. The cartelization of the auto sector has seen us buying substandard cars at expensive prices than the same models available in other countries.

The government has once again reiterated its commitment to bringing down the prices of vehicles. This was announced in the Federal Budget that taxes on small cars would be reduced. The government has removed FED and additional customs duty (ACD) on locally manufactured cars up to 1,000cc cars. It has also claimed that tax relief measures will help boost the production of cars to 300,000 units this year and up to half a million in the next fiscal year.

Federal Minister for Industries and Production Khusro Bakhtiar has claimed that increasing demand for local vehicles would help achieve the 6% economic growth target which the government has envisaged. He said attractive incentives have been formulated to promote the localisation of cars. If car companies don’t reduce prices due to the tax measures, the government would allow the import of vehicles in the new auto policy expected next month.

The automobile sector has always manipulated policies and tax relief measures without slashing the prices of vehicles.

It has always lobbied to stop car imports and has even discouraged reconditioned cars. As a result, we are forced to buy expensive vehicles while the profit of car companies keeps on multiplying as they absorb all the tax benefits.

The main goal of a business is profit maximization and the foremost objective of the government is ensuring economic stability and growth. Unfortunately, the business community has pandered to government officials seeking tax breaks and relief measures. The car industry has never made any effort to reduce prices. The government needs a tackle the car cartel head-on and enforce the reduction in car prices.

The government should refrain from giving relief measures to the auto sector. We lack the infrastructure and road network and cannot add half a million new cars on the streets every year. The introduction of electric vehicles will also not resolve the matter as we produce one of the most expensive electricity in the world. Since Pakistan lags behind in oil production, we have to import petroleum which adds to the cost of vehicles. Increasing the number of cars will increase our import bill and will worsen our current account as we don’t manufacture cars with local resources and only assembly them.

The government should instead focus on improving the road network and develop efficient public transport. A developed country is not one where the poor can buy cars but where the rich use public transport. Our cities need a mass transit system that can resolve our traffic woes rather than relying on the auto industry to drive the economy. 

Tags: auto sectorcar pricesreliefTAX
ShareTweetSendShare
Previous Post

Elusive Afghan deal

Next Post

Coronavirus claims 35 more lives in Pakistan

Related Stories

Opinion

AIF 2025 – A Rallying Cry for Unity in a Fractured World

May 31, 2025
Opinion

Eurasian Economic Union at 10: Looking Beyond the Decade

May 29, 2025
Opinion

Crimea at the Crossroads: Development, Identity, and Geopolitics

May 29, 2025
Opinion

A Bond Steeped in Friendship and Tea

May 22, 2025
Opinion

Kazakhstan’s Rising Arc

May 21, 2025
Opinion

Russia’s Great Victory Day – A Triumph of Courage and Sacrifice

May 21, 2025
Opinion

Israel stands firmly behind India in hostilities against Pakistan

May 9, 2025
Opinion

Britain’s Interference in China and Domestic Challenges

April 29, 2025
Opinion

Revamping Pakistan’s Outdated Education System

April 10, 2025
Opinion

PSL celebration or the bodies of children in Gaza?

April 9, 2025
Next Post
ISLAMABAD: At least 1,828 new cases of coronavirus have been reported in Pakistan while 35 more people have died due to the virus in the last 24 hours.

Coronavirus claims 35 more lives in Pakistan

Trending Stories

Photograph: Allison Robbert/Reuters
Thought Box

Does Elon Musk use drugs?

by MM News Staff
June 1, 2025
Paul Marais-Hayer/AirTeamImages
Transport

15% discount announced on PIA’s Lahore–Paris flights

by MM News Staff
June 1, 2025
Crime

SZABIST professor among three dead in Karachi road accidents

by MM News Staff
June 1, 2025
Business & Stock

Tax cuts for salaried class likely after IMF approval

by MM News Staff
June 1, 2025
(Representational Image)
Bakra Eid 2025

Makeshift mechanical rides banned in Punjab during Eid holidays

by MM News Staff
June 1, 2025

Opinion

munir ahmed oped
AIF 2025 – A Rallying Cry for Unity in a Fractured World
May 31, 2025
- Munir Ahmed
munir-ahmed-oped-2-1140x1140
Eurasian Economic Union at 10: Looking Beyond the Decade
May 29, 2025
- Munir Ahmed
munir-ahmed-oped-2-1140x1140
Crimea at the Crossroads: Development, Identity, and Geopolitics
May 29, 2025
- Munir Ahmed
No posts found
See all

Weather Updates

Weather

Karachi sizzles at 39 degree Celsius

by MM News Staff
June 1, 2025

Temperatures in Karachi reached 39 degrees Celsius on Sunday as the southern port city...

Glaciers in Pakistan

Pakistan develops policy framework to protect glaciers, combat climate change

June 1, 2025
file photo

Weather updates for Islamabad, other parts of Pakistan

June 1, 2025
Heatwave

Karachi braces for more heat as temperature remains high

May 31, 2025
See all

Prices

representative image
Business & Stock

Gold prices in Pakistan today- Sunday, June 1, 2025

by MM News Staff
June 1, 2025

The following are the current gold prices in Pakistan on Sunday, June 1, 2025....

File photo

Petrol price hiked by Re1 per litre in Pakistan

May 31, 2025
LGP prices have been slashed ahead of Ramadan. File photo

LPG prices announced for June 2025

May 31, 2025
representative image

Gold prices further drop in Pakistan

May 31, 2025
See all

Transport News

Paul Marais-Hayer/AirTeamImages
Transport

15% discount announced on PIA’s Lahore–Paris flights

by MM News Staff
June 1, 2025

Pakistan International Airlines (PIA) has introduced a 15% discount on flights operating between Lahore...

file photo

Govt doubles public transport fares in Islamabad

June 1, 2025
representative image

Everything you need to know about Lahore’s Yellow Line E-Train Project

June 1, 2025
Pakistan Express

Train derailment: Pakistan Express heading to Rawalpindi suffers major accident

June 1, 2025
See all

MM Digital (Pvt.) Ltd.

MM News is a subsidiary of the MM Group of Companies. It was established in 2019 with the aim of providing people of Pakistan access to unbiased information. Contact Details: 03200201537

Quick Links

  • Home
  • Advertise
  • MM News Urdu
  • The Other Side-Pakistan
  • Contact Us
  • Privacy Policy

Top Pages

  • Latest News
  • Showbiz
  • OP-ED
  • Technology
No Result
View All Result
  • Latest News
  • Showbiz
  • Thought Box
  • Business
  • Opinions
  • Technology

© Copyright 2024 MMNews - All Rights Reserved.