Tax increase will not affect bikes sale

KARACHI:,,, Though Sindh government has targeted motorcyclists in the budget for new fiscal year 2014-15 and increased life-time tax on motorcycles by 50% and registration fee by 150%, yet motorcycle dealers believe that the such raise would not affect the bikes sale as due to worst public transport system in the city, number of bikers is increasing day by day.

Muhammad Raza, a dealer in Akbar Road, the biggest motorcycles market in the city, said that increase in tax and registration fee would definitely raise prices of motorcycles but as far as the sale was concerned it would witness no affect.

“In last two years, prices of motorcycles have increased but instead of this, the sale also rose,” he said and added that due to worst public transport system in the city, middle class people have no other option but to buy motorcycles.

He said currently, China model motorcycles’ prices are between Rs 40000 to Rs 48000 while documentation cost is Rs 2650.

The existing life-time tax on motorcycles is Rs1000, which the government has now proposed to be increased to Rs1500, while the fees for a registration book have been proposed to be increased from Rs200 to Rs500.

A 900 per cent increase has been proposed on the fee for duplicate book which will cost two-wheeler owners Rs2000 instead of the earlier rate of Rs200.

Another dealer in the market, Ali Hassan, said that most of the people buy motorcycles on installations basis in which the price of the motorcycle was very high than the cash price. “Those who buy the vehicle on installation do not check or think about the price more so Rs 1500 to Rs 2000 increase in price will not affect the sale,” he said.

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