Renault signs MoU with Majid Al Futtaim to set up car production plant in Pakistan

[v9s]

So how will the government make up for the lost revenue if it gives a tax break that you ask for, while waiting for the boost to the economy to actually materialize?

The Govt. already gives tax breaks to local manufacturers. Any model to be localized has a part list submitted to the EDB. There are different categories of parts, A-Max, Non-A-Max, etc, classified on the basis on whether they can be localized or not. The approval process has a range of conditions and targets that have to be availed to get the tax break (i.e. % of localization, tech transfer, employment, etc).

 

[VCheng]

The Govt. already gives tax breaks to local manufacturers. Any model to be localized has a part list submitted to the EDB. There are different categories of parts, A-Max, Non-A-Max, etc, classified on the basis on whether they can be localized or not. The approval process has a range of conditions and targets that have to be availed to get the tax break (i.e. % of localization, tech transfer, employment, etc).

Tax "breaks"? Is that why the Pakistani domestic market is a hostage of limited variety of poor quality products at high prices?

 

[airmarshal]

Argument is made that since Pakistan is a very small market therefore we cant produce good quality cars at affordable prices.

Question is if Morocco or Thailand are bigger markets than Pakistan? How come these two much smaller countries have become export hubs of some reputable manufacturers?

 

[VCheng]

The argument is that Pakistan is too small a market to justify the investment needed relative to the risk.

 

[pklistner]

If world 6th largest country by population is a small market what can I say?

 

[VCheng]

If world 6th largest country by population is a small market what can I say?

The 6th largest country by population is at #41 in car sales:

http://focus2move.com/world-car-market/