The Ministry of Industries and Production has advised automobile makers to legitimize the raised costs of vehicles, failing which, the public authority will uphold the law on exploitative against them.
The mandate was given in a letter composed by the Engineering Development Board (EDB) which is under the Ministry of Industries and Production and manages the auto and wireless enterprises.
The government has very recently given significant tax concessions to automobile manufacturers in order to make cars affordable for the public. While the car manufacturers reduced their prices following the grant of these concessions, it now appears that they intend to increase prices even though it has been only a few weeks since the concessions were granted, and despite the fact that there has been no increase in costs of production. This situation is clearly unacceptable, and the government may have no recourse but to initiate regulatory measures, which may include fixation of prices under the Price Control and Prevention of Profiteering and Hoarding Act, 1977. You are, therefore, directed to instruct automobile manufacturers to provide their costing structures failing which, price fixation proceedings would need to be carried out unilaterally.
The General Manager (Policy) of the EDB,
revealed that “the Ministry of Industries and Production has asked the vehicle organizations to share their costing structure and legitimize any value climb”.
He added that EDB agents met with vehicle organizations and they have requested that the public authority give a standard arrangement to supply the information as it will be simpler along these lines.
To make vehicles moderate and to build deals volume, the public authority had as of late presented it’s Auto Policy 2021-2026 under which car makers were given assessment motivating forces on Additional Customs Duty (ACD) and Federal Excise Duty (FED). This had scaled down the costs of vehicles however producers have been attempting to raise costs again throughout the most recent couple of weeks while acquiring dissatisfaction with regards to the public authority.