Automobiles: GST to increase cost of goods

Zero-rated exemption was detrimental to the already adversely-affected commercial automobile industry.

KARACHI: In the current budget the government has removed zero-rated exemption on commercial vehicles (trucks, buses and CNG buses) which was detrimental to the already adversely-affected commercial automobile industry, said Hinopak Motors Limited DGM Sales & Business Development Shahab Anwar. In a statement on Tuesday Anwar said that in the recent budget imposition of general sales tax (GST) on commercial vehicles will completely devastate the commercial automobile industry which is already in declining phase and working on almost half of its capacity, he said. The zero rating facility was extended to the commercial automobile sector in 2006 and was of strategic importance for modernisation of trucking industry to cope with the transportation requirement of the country.

Published in The Express Tribune, June 8^th, 2011.