Motorcycles: Sales to rise despite higher taxes
Increase in tax and registration fees would definitely raise motorcycle prices but was adamant that sales would not be affected. PHOTO: FILE
Despite the Sindh government increasing the life-time tax on motorcycles by 50% and registration fee by 150%, dealers believe that such measures will not deter bike sale due to the deplorable condition of public transport in the city.
Muhammad Raza, a dealer in Akbar Road –the largest motorcycles market in the city – said that increase in tax and registration fees would definitely raise motorcycle prices but was adamant that sales would not be affected.
“In the last two years, prices of motorcycles have increased but sale also rose,” he said, adding that due to the failing public transport system, consumers have no other option but to buy motorcycles.
He said currently, prices of Chinese motorcycles are between Rs40,000 to Rs48,000 while the documentation cost is Rs2,650.
The existing life-time tax on motorcycles is Rs1,000, which the government has now proposed to be increased to Rs1,500.
Published in The Express Tribune, June 17th, 2014.