Registration and transfer: Motor dealers urge govt to reverse tax increase

Claim sales have been badly affected in the past six weeks

KARACHI: All Pakistan Motor Dealers Association (APMDA) has urged the government to reverse the increase in taxes on vehicle registration and transfer of used ones, in an effort to increase sales.

“Taxes the government introduced during last year’s budget have seriously discouraged the registration and transfer of used vehicles,” APMDA Chairman HM Shahzad said during a press conference at the Karachi Press Club.

The government increased taxes on the registration and transfer of used vehicles but its implementation only occurred recently, which has irked used car dealers who say their sales have been badly affected in the past six weeks.

APMDA representatives said they have requested the government to take back the increase, otherwise customers would not transfer the vehicles’ ownership.

The number of daily registrations at Sindh Motor Registration Wing has dropped to 100-150 from 500 units. Transfer cases have also reduced to around 250-300 from more than 1,000 per day, Shahzad said.

The revenue of Sindh government on registration and transfer of cars has reduced to Rs20 million per day from Rs100 million per day.

“Sindh government can improve its earnings by collecting these taxes on previous rates like K-P and Balochistan governments who refused to increase the rate,” he added. 

Published in The Express Tribune, March  19^th,  2015.

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