LAHORE: The Pakistan Association of Automotive Parts & Accessories Manufacturers (Paapam), representing over 300 SME engineering companies in the country, has formally requested the Federal Minister for Finance & Revenue Muhammad Aurangzeb, to withdraw the recent requirement for member firms to submit an affidavit concerning the declaration of information on purchases and returns.

In a letter addressed to the Finance Minister, Paapam Chairman Usman Aslam Malik expressed the association’s concerns over the legal implications of the affidavit which includes potential penalties such as arrest and imprisonment for mis-declarations. The affidavit was met with apprehension among Paapam’s member firms, which contribute to the formal economy by supplying parts to Pakistan’s automotive 2-3 wheeler, truck, bus and tractor industries.

Malik highlighted that Paapam's member companies already adhere to the formal economy's regulations and that requiring the company’s Chief Financial Officer (CFO) to submit such an affidavit appears unnecessary. He called on the Ministry to reconsider and withdraw the affidavit requirement to alleviate concerns and foster a more supportive business environment.

Senior Vice Chairman Shehryar Qadir added, “In light of the recent affidavit requirement, we urge the Ministry of Finance to reconsider this policy. The legal implications of such a requirement can be daunting for our member firms, which already operate under stringent regulations.”

Paapam looks forward to a favourable response from the Ministry of Finance to ensure a streamlined and business-friendly regulatory framework for the industry.

Copyright Business Recorder, 2024