Luxury cars may be banned

[Jango]

The government has decided to impose a ban on import of luxury Mercedes cars in the next budget, it was revealed on Sunday.

Finance Minister Ishaq Dar will announce this decision in the upcoming budget 2013-14. Ishaq Dar had imposed a similar ban during his previous term in office, but the ban was lifted during the tenure of Pervez Musharraf and four chief ministers of the provinces had imported Mercedes vehicles paying no duty and taxes.

“Now the finance minister has again taken the decision to ban the import of Mercedes cars in the next budget,” a senior FBR official told local media. The government is also going to propose increased income tax rates for Association of Persons (AoPs) and high bracket income slabs.
- See more at: Luxury cars may be banned | Pakistan Today | Latest news | Breaking news | Pakistan News | World news | Business | Sport and Multimedia

WTF is the purpose of this?

 

[uzair ramay]

why onle mercidise???

 

[Jango]

The government functionaries all use Merc cars, also in a personal capacity.
@hasnain0099 is a economist, maybe he can shed light on the advantages of this move.

 

[Jzaib]

now every one will stock it before the budget

 

[SBD-3]

The government functionaries all use Merc cars, also in a personal capacity.
@hasnain0099 is a economist, maybe he can shed light on the advantages of this move.

There is no direct answer so as to why to block merc only. One would have to look at the import statistics for that to see what share of luxury car import consists of merc. But I have seen is that most of the corporates are usually importing merc cars for their executives. But I can't give you any precise answer.

now every one will stock it before the budget

It takes around 2 months to book and import cars. Like I said, merc are not commonly used cars are usually imported for the use of corporate executives. Thus there's not a big window of opportunity since the budget would be announced tomorrow.

 

[Jzaib]

There is no direct answer so as to why to block merc only. One would have to look at the import statistics for that to see what share of luxury car import consists of merc. But I have seen is that most of the corporates are usually importing merc cars for their executives. But I can't give you any precise answer.


It takes around 2 months to book and import cars. Like I said, merc are not commonly used cars are usually imported for the use of corporate executives. Thus there's not a big window of opportunity since the budget would be announced tomorrow.

well the ranks in government who is making the policy could have already benifited from it ....

 

[SBD-3]

well the ranks in government who is making the policy could have already benifited from it ....

Tell me how?

 

[Jzaib]

that is why i used COULD .,..so u can give me benifit of doubt ...

As you siad it took 2 months to export it ..if the guys in PML n knew that they will bring this policy ..couldnt they imported it few months ago.

 

[SBD-3]

that is why i used COULD .,..so u can givce me benift of doubt ...

As you siad it took 2 months to export it ..if the guys in PML n knew that they will bring this policy ..couldnt they imported it few months ago.

Golden rule: Unless you're not so sure about it, refrain from making any claims.

 

[qamar1990]

The government has decided to impose a ban on import of luxury Mercedes cars in the next budget, it was revealed on Sunday.

Finance Minister Ishaq Dar will announce this decision in the upcoming budget 2013-14. Ishaq Dar had imposed a similar ban during his previous term in office, but the ban was lifted during the tenure of Pervez Musharraf and four chief ministers of the provinces had imported Mercedes vehicles paying no duty and taxes.

“Now the finance minister has again taken the decision to ban the import of Mercedes cars in the next budget,” a senior FBR official told local media. The government is also going to propose increased income tax rates for Association of Persons (AoPs) and high bracket income slabs.
- See more at: Luxury cars may be banned | Pakistan Today | Latest news | Breaking news | Pakistan News | World news | Business | Sport and Multimedia

WTF is the purpose of this?

actually a very good idea.

 

[Luftwaffe]

I find it idiotic move, people have money they want to buy luxury vehicles they are willing to pay Taxes upon it so what is the problem. It is an economic activity. Our local manufacturer failed to design and develop safest quality vehicles with utmost comfort and the best price bang for the bucks.

I tell you foreign currency and local currency accounts are going to come under scrutiny and we might see taxes imposed on account above certain limit. You are going to see spin off enforced karz utaro mulk sawaro scheme as well.

 

[SBD-3]

I find it idiotic move, people have money they want to buy luxury vehicles they are willing to pay Taxes upon it so what is the problem. It is an economic activity. Our local manufacturer failed to design and develop safest quality vehicles with utmost comfort and the best price bang for the bucks.

The problem was that there was massive tax evasion in this sector since there were loopholes in the import policy (like schemes of "personal gift", "personal baggage" etc) which were being manipulated by local import dealers.

I tell you foreign currency and local currency accounts are going to come under scrutiny and we might see taxes imposed on account above certain limit. You are going to see spin off enforced karz utaro mulk sawaro scheme as well.

Pakistan may need every penny of FX as we are going to pay back the IMF soon. Thus like I said, we need an external account re-engineering. almost 60-70% of our imports are essential items thus there is only little room to maneuver.

 

[Luftwaffe]

I don't see positive reforms in the next 100 days or later on in 5 Years.

If Pakistan needs to pay off loans it need to grab state bank presidents all heads from 1971 up till now as to why loans were written off easily. I believe the case in is SC but CJ is reluctant.

 

[Manindra]

The problem was that there was massive tax evasion in this sector since there were loopholes in the import policy (like schemes of "personal gift", "personal baggage" etc) which were being manipulated by local import dealers.

He should close loopholes of taxation & increase duty on import which icrease extra revenue for the government.
GOP goes to IMF to grant a loan & if they ban imports of important members of IMF then it is economic sucide. Increasing duty is the best idea which decreases imports & increases additional income.

 

[DESERT FIGHTER]

So are they gonna close the dealerships?