Stifling growth

The decision to hike the general sales tax on locally-made cars of 1400 cc and above to 25 per cent, coupled with currency devaluation, has dealt a severe blow to our automobile industry. Sales have plummeted by almost half in the first seven months of the current fiscal year, affecting parts manufacturing and employment. This decline translates to decreased tax revenue, while energy prices and financing rates soar.

The decision to raise taxes on local vehicles favours imports and burdens the middle classes. Customers would be greatly benefitted if the authorities reconsider this policy, engage in dialogue and seek sustainable solutions that foster growth rather than stifle it.

Qasim Haider

Karachi