Authorities have delivered a decision against Pak Suzuki Motor Corporation (PSMC) in a recent General Sales Tax (GST) collection case, putting the company in jeopardy.
According to reports, the Federal Tax Ombudsman (FTO) has requested the Federal Board of Revenue (FBR) to ensure that Pak Suzuki recovers any GST collected from car consumers that exceeds the 12.5 percent predefined rate announced in the current auto policy.
The GST rate on automobiles was 17 percent prior to the commencement of the new car policy. Some consumers acquired vehicles from authorised Suzuki dealerships after the new policy was introduced on July 31, 2021, when the GST rate was formally decreased to 12.5 percent, according to government paperwork. However, the company continued to charge GST at the same old rate of 17 percent on the Customer’s purchase invoices.