Meeting with vendors today: Ministry to seek justification of hike in prices of cars, SUVs

ISLAMABAD: The Ministry of Industries and Productions has convened a meeting with auto vendors Thursday (Mar 31) to seek justification of sudden increase in the prices of cars and SUVs; however, to check underinvoicing import of luxury vehicles was mandate of the Federal Board of Revenue (FBR) and the Ministry of Commerce, a parliamentary panel was informed on Wednesday.

A monitoring committee constituted under New Auto Policy 2021 headed by secretary Industries and Productions has scheduled a meeting with representatives of auto manufacturers to find out the hike in the cost productions including raise in international fridge charges and shortage of chips.

Secretary Industries briefed the Public Accounts Committee (PAC), which met here on Wednesday under Chairman Rana Tanveer Hussain. Chief Executive Officer (CEO) Engineering Development Board (EDB) briefed the members of the committee on various incentives and standards offered to Greenfield investors in auto sector players under the Automotive Development Policy 2021.

Members committee grilled the officials of the Ministry of Industries on non- implementation of automobile industry deletion programme to provide vehicles to the nation at affordable prices.

Committee Member Khawaja Asif said that car manufactures were very powerful and have a big say in politics by sitting in the parliament. He said the government was not discouraging the import of luxury vehicles when it had to make repayment of $12 billion debt till April 2022.

Asif further alleged that 10,000 CBU MG vehicles were imported by under invoicing and no action was taken against them. Responding to his allegation, the chairman FBR said that Chinese government certified the claims of MG Motors; however, manufactures did not testify the claims. “We cleared MG 2,000 units provisionally which parked on the port for eight months, however, verification is ongoing,” he added.

The chairman committee expressing its utter displeasure over failure to introduce various standards in the locally-produced cars, said the prices of cars were increasing, delay in delivery of vehicles and incidents of own money on cars were increasing.

The CEO EDB said that international standard PSQ would be enforced phase wise as 15 standards in cars were mandatory after July 2022 out of 150. He further said that the new auto policy had granted incentives on localizing which would help boost export of vehicles.

Copyright Business Recorder, 2022