Request: Motorcycle dealers demand cut in turnover tax

Motorcycle industry is the most vibrant of all the sub-sectors of the auto industry in Pakistan and it has been maintaining an average growth rate of around 15% year after year for the last five years and that too on an expanding base.

LCCI President Irfan Qaiser Sheikh made the demand after holding a meeting with a five-member delegation of the Motorcycle Dealers Association.

Sheikh said the demand of motorcycle dealers was justified as their profit margin in the context of turnover ranged from 0.50% to 1% and normal tax on profit would in any case be lower than 1% of the turnover. But, he added, the dealers were legally bound to pay 1% turnover tax, which was neither prudent nor sustainable.

“How can motorcycle dealers survive when they give their little profit to the FBR in the shape of turnover tax,” he asked.

Published in The Express Tribune, January 26^th, 2012.