The government has planned to penalize car companies who fail to deliver their vehicles within 60 days of receiving a booking order. The decision, made on Monday at a meeting of the National Assembly Standing Committee on Industries and Production presided over by Sajid Turi, will be finalized in the upcoming budget, which will go into effect in July 2021.
For delivery delays, the committee has agreed to levy a fee of 3% plus Kibor (Karachi Interbank Exchange Rate). The rate will be applied to the amount paid by the buyer. The decision is also likely to aid in the reduction of the practice of ‘own-money' sales of new cars in Pakistan.
Delays in deliveries are one of the main reasons that the threat of ‘own-money' persists. Although the government has previously imposed a similar 2% penalty as well as a Rs 200,000 WHT on individuals who sell newly purchased locally made vehicles within three months of delivery.
However, these regulations are ineffective because no investor registers and sells a car within 90 days; in fact, the game is played on the first booking of ‘unregistered' vehicles, and it is generally the customers who have already paid with their own money who are the first to register a new car.