Mo­tor­cy­cle as­sem­blers seek govt to cut in taxes

Pakistan Observer - - ECONOMY WATCH -

ISLAMABAD—Mo­tor­cy­cle as­sem­blers have de­manded the gov­ern­ment on Tues­day to re­lieve the in­dus­try of some taxes in the up­com­ing fed­eral bud­get of Fis­cal Year (FY) 2016-17. Ac­cord­ing to the body, 50 plants out of to­tal 120 are closed and the re­main­ing are not meet­ing their max­i­mum pro­duc­tion. Only 50 per­cent of the to­tal pro­duc­tion ca­pac­ity is be­ing uti­lized cur­rently by pro­duc­tion houses in the coun­try.

The in­dus­try is ca­pa­ble of pro­duc­ing around 4 mil­lion units per anum but sales are stag­nated at 2 mil­lion. In­dus­tri­al­ists while talk­ing to pri­vate news chan­nel said, that lesser pro­duc­tion leads to in­creased man­u­fac­tur­ing cost while gov­ern­ment’s pro­duc­tion quota scheme has re­sulted in lim­ited use of ca­pa­bil­ity. The body has stated that em­ploy­ment op­por­tu­ni­ties would in­crease if the gov­ern­ment con­sid­ers rec­om­men­da­tions of the in­dus­tri­al­ists and re­duce taxes.—APP

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