The penalty rate for automakers’ on delayed car deliveries has been doubled by the Ministry of Industries and Production (MoIP). The rate has been raised from KIBOR+2 percent to KIBOR+3 percent, according to an official source.
Several manufacturers and dealerships have failed to deliver automobiles on schedule, according to the Ministry of Industries and Production. Car firms must deliver automobiles to consumers within 60 days of reserving, according to the Automotive Policy.
Customers must be compensated if a company fails to do so. They must also produce proof of that compensation every two years to the Engineering Development Board (EDB).
Complaints about compensation have also been handled by EDB. According to the source, if a manufacturer fails to compensate, MoIP has the authority to revoke its manufacturing certificate. According to the source, all manufacturers have paid their penalties for late deliveries on time so far, to comply with the legislation.
The government has also taken the following steps to protect consumers:
- Taxes of Rs. 50,000, Rs. 100,000, and Rs. 200,000 have been imposed by the government on automobiles based on their engine displacement at the time of registration. If you acquire a new automobile and sell it to someone else in an unregistered state within 60 days of receiving it, you’ll have to pay the tax.
- At the time of booking, carmakers are only allowed to charge 20% of the entire invoice amount. They’ll only get the rest of the money after the delivery.
- The government has approved the creation of a high-powered committee, chaired by the Secretary of the Interior, whose main mission will be to guarantee that the aforementioned articles are implemented.
EDB, the Ministry of Commerce, the Federal Board of Revenue (FBR), the Competition Commission of Pakistan (CCP), the Ministry of Science and Technology (MoST), the State Bank of Pakistan (SBP), the Pakistan Automotive Manufacturers Association (PAMA), and the Pakistan Association of Automotive Parts and Accessories Manufacturers will all be representative on the committee (PAAPAM).