With reference to a letter written by Jawaid Shafi on the auto industry, I would like to add that for an investor, vehicle hoarding is no different from sugar hoarding, or the buying and reselling of plots as all that matters is to create an artificial demand.
This allows the investor to control and re-sell commodities at exorbitant prices. The reselling at excessive prices is causing a delay in the deliveries of cars as well as a rise in premiums.
What is interesting is that while Honda and Toyota only charge the registered price of the car, additional premiums are charged by illegal investors from impatient buyers.
It is the duty and responsibility of the government to enforce legislation whereby such middlemen and illegal investors can be prevented from creating this artificial demand and minting money at the expense of the general public and image of the foreign investors.
Do these investors pay any income tax or sales tax to the government? Are all their imports and transactions recorded correctly so that CBR and NAB can investigate how the investors are under-invoicing and making over 100% profits on used cars from gullible, impatient buyers?
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