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Automotive traders and importers express deep concerns over CVT

Automotive traders and importers express deep concerns over CVT
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May 26, 2023 (MLN): Pakistani automotive traders and importers on Friday expressed deep concerns over Excise & Taxation (E&T) Department’s unjust demand for Capital Value Tax (CVT) being imposed on transfer of vehicles, which became effective from July 2022.

However, it was not applied immediately by the E&T Department and now, after a lapse of 10 months, the department was demanding CVT retrospectively which was technically not possible.

Automotive Traders & Importers association (ATIA) sought assistance of Karachi Chamber of Commerce & Industry (KCCI), in dealing with this pressing issue as 1% CVT imposed on the transfer of vehicles cannot be demanded from July 1, 2022.

The reason being that during these 10 months, many vehicles have been sold and transferred at least three to four times so how a showroom owner would be able to arrange 1 percent CVT on each transfer for vehicles that have been sold and transferred so many times.

They proposed that it will be impossible to submit CVT for all the transfer of vehicles which took place during the last 10 months.

President KCCI Mohammed Tariq Yousuf, Senior Vice President Touseef Ahmed, Vice President Muhammad Haris Agar, Chairman Special Committee for Small Traders Majeed Memon, KCCI Managing Committee Members, and others were also present on the occasion.

President ATIA Ch. Amir Ali Khan stated, “It is highly unfair that we are being penalized for the department’s mistake, hence, relief must be provided to perturbed showroom owners by applying CVT on all future transfers instead of demanding CVT for transfers done during the last ten months.”

ATIA delegation members also expressed deep concerns over rising street crimes at new M.A. Jinnah Road, University Road and Khalid Bin Waleed Road where most of the car showrooms were situated and the customers were fearlessly being looted even during broad daylight.

Referring to ongoing development work at New M.A. Jinnah Road for Red line bus route, ATIA delegation said that this project would reduce the size of existing road from Central Jail to Peoples Roundabout and create severe traffic congestion.

ATIA delegation further stated that in order to deal with the issue of traffic congestion an alternative pathway should be constructed.

President KCCI Mohammed Tariq Yousuf after addressing the hardships of showroom owners said that they will also discuss the issue pertaining to the construction red line bus route with relevant authorities so that it can be solved and shopkeepers can carry on their activities as usual.

While referring to concerns expressed over rising street crimes, Tariq Yousuf advised ATIA delegation to arrange at least two Suzuki Vans themselves along with drivers which can be provided to local police stations for carrying out patrolling in this area.

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Posted on: 2023-05-26T16:51:50+05:00