The government has decided to impose penalties on car companies who fail to deliver their product within sixty days after booking an order.
The decision was taken on Monday in a meeting of the National Assembly Standing Committee on Industries and Production presided over by Sajid Turi.
The decision will be finalised in the upcoming budget with the new clause to be applicable from July.
The committee has decided to impose a fine of 3 perent plus Kibor (Karachi Interbank Exchange Rate) for delay in deliveries. The rate will be charged on the amount the buyer has paid.
The decision will resolve the practice of ‘own-money’ on sale of new cars.
Own money is the “amount” above the original price an investor charges a buyer, who wants to buy a car immediately. It is a common practice in Pakistan’s car industry, where car assemblers sometimes take months to deliver an order. A buyer has to make a partial payment to book a car, that is delivered as late as six months sometimes.