Syed Nabil Hashmi, was elected unopposed Central Chairman of Pakistan Association of Automotive Parts and Accessories Manufacturers (PAAPAM) while Munir K. Bana has been elected as Vice Chairman. Executive Committee of fourteen members has been elected for the year of 2011-2012 in an election on Saturday.
Soon after his election, Hashmi said that the auto sector is passing through a critical time of its history; since manufacturing units are being closed while 0.5 million workers of the automotive industry are facing the threat of unemployment due to closure of tractor manufacturing units.
He said that imposition of 16 per cent General Sales Tax (GST) and decision to allow the import of tractors will not only ruin this industry but it would also have fatal repercussions on the Agricultural and engineering sector.
The recent tax has resulted in the closure of 300 tractor part’s manufacturing units. This is the first time that any industry has remained closed for such a long period in the history of Pakistan, and government is still silent showing little interest in the woes of the Auto-sector. He said, after the imposition of this tax, production of tractors has gone down to 500 per month as compared to 6000-7000 per month last year. In addition comparing with other countries he explained that India has a GST of 4-5 per cent and Europe levies a tax of 8 per cent. Similarly, tax on agricultural inputs in other countries around the world is generally lower than this or these inputs are subsidised. Tractor is an expensive input and levying a sudden GST of 16 per cent has taken it beyond the purchasing power of farmers, forcing the industry to close down which is very unfortunate for Pakistan. He requested the officials to reduce GST to 8 per cent and called upon the authorities to introduce schemes for boosting mechanised farming in view of devastation by recent floods for enhancing agriculture productivity.
16pc GST fatal for auto-industry
