ISLAMABAD - Federal Board of Revenue (FBR) is seriously contemplating to abolish five per cent federal excise duty (FED) on auto sector in the upcoming budget for the next financial year 2009-10 in order to decrease the prices of vehicles, TheNation reliably learnt on Tuesday. Reliable sources in the tax machinery told TheNation that the government might eliminate the FED on the vehicles, as the sale of automobiles had plunged due to higher prices in the last few months. On average, the prices of vehicles had soared by almost 20 to 30 per cent in last few months, which badly affected their demands, he added. The sources said that government had no other choice but to eliminate FED on the auto sector in order to decrease the prices, as this could give some relief to the auto sector and also entertain the people by decreasing prices of vehicles. It is worth mentioning here that Ministry of Industries and Production has several times asked the Pakistan Automotive Manufactures Association (PAMA) to decrease the prices of vehicles but talks between them didnt bear any results, as the PAMA wanted government to eliminate FED. The sources in the Ministry of Industries and Production told TheNation that Mian Manzoor Wattoo, Federal Minister for Industries and Production, asked the PAMA to increase their production, as currently due to low production their prices were too high in the country. The Ministry could also consider importing the vehicles (new as well as used) in order to eliminate the monopoly of the local manufactures and lessen the prices, the source added. According to the Official data of PAMA, the sale of the auto sector in the first ten months (July-April 2009) of the current fiscal year has declined by 26pc as compared to the same period of last financial year. 393,884 units have been sold in the current year, while the sale in the last year was 532,305 units. A member of PAMA when contacted informed TheNation that the association was asking the Ministry of Industries and Production to eliminate the FED in order to reduce the prices of the auto sector and it hoped it would be eradicated in the budget.