Car Companies Ordered to Repay Own Money and Interest on Late Deliveries

The Senate Standing Committee on Industries and Productions was Friday informed that in case of failure to deliver a car within 60 days of the booking, the purchaser can claim back the own money as well as payment of KIBOR plus 3 percent interest.

The committee, which met under the chairpersonship of Senator Khalida Ateeb, was briefed by the Engineering Development Board (EDB) on the question of own money on car bookings raised by Senator Dr Asif Kirmani. It was further informed that the purchaser has to pay only 20 percent of the total price of the car at the time of booking.

On the point of standardization and quality of products and parts of the automobiles, the committee was informed that the accessories of Honda Company are locally manufactured affecting the quality of products. It was further informed that the EDB has no role in the standardization of production.

The Pakistan Standards & Quality Control Authority (PSQCA) which is an autonomous body subordinate to the Ministry of Science and Technology has the mandate to regulate and enforce quality standards in Pakistan.

The committee also showed concern over the procedure through which a car is cleared for a road test and inquired whether or not the procedure is counter-checked by another authority other than the company itself. The committee also raised a question from the EDB on the delayed delivery time of the automobiles.

The committee was also apprised of the Auto Industry Development and Export Policy (AIDEP 2021-26) which gave incentives to the auto sector under Auto Industry Development and Export Policy (AIDEP 2021-26). It was informed that all taxes are removed on locally manufactured cars up to 1000cc (meri Garri Scheme). The prices of locally manufactured cars have also been brought down (above 1000 cc) through a reduction in FED by 2.5 percent on each category of cars /SUVs and LCVs.

The meeting was attended by Senators Fida Muhammad, Hidayat Ullah, Dr. Asif Kirmani, Mohammad Abdul Qadir, and Senator Shaheed Khalid Butt. Secretary Ministry of Industries and Production, Engineering Development Board CEO, and other senior officers were also in attendance.

Source: Pro Pakistani