Pak Suzuki Motor Company (PSMC), Pakistan’s leading car company in terms of sales and production volume, is currently facing a series of setbacks that have severely affected its operations. The company has been grappling with poor sales, price hikes, tax rate increases, and import restrictions, which are common challenges the entire auto industry faces. However, the government’s recent proposal to raise taxes has raised concerns that it might push PSMC over the edge.
Pak Suzuki Appeals to Prime Minister to Prevent Further Tax Hikes
PSMC’s Plea to the Prime Minister
In a heartfelt letter addressed directly to the interim Prime Minister of Pakistan, Mian Shahbaz Sharif, PSMC highlights the critical situation it currently finds itself in. The letter acknowledges that the company is going through the most challenging period in its 40-year history. During the first quarter of the current year, PSMC incurred substantial losses of Rs. 12.9 billion due to prevailing economic uncertainties. Furthermore, the company has been forced to observe numerous “No Production Days” each month, exacerbating the financial strain. The dire economic and business situation has also taken a toll on PSMC’s dealers and vendors, with some already forced to close their doors and many others teetering on the brink of closure.
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Appeal for Tax Relief on Cars up to 1,000cc
Recognizing the gravity of the situation, Suzuki, the parent company of PSMC, has urged the Prime Minister not to approve the proposed tax hikes on cars with engine capacities up to 1,000cc. This plea is especially significant given that PSMC predominantly manufactures cars in this engine category. By requesting tax relief on smaller cars, Suzuki hopes to alleviate some of the burdens on PSMC and potentially mitigate the impact on its operations.
Auto Industry’s Collective Voice
PSMC’s concerns are not isolated, as the entire auto industry has voiced its opposition to the government’s plans to increase taxes in the upcoming budget. The industry anxiously awaits the government’s response to their collective plea for support during these challenging times. The outcome of this critical decision will undoubtedly have far-reaching implications for both PSMC and the overall auto industry.
Seeking Your Feedback
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