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Be Prepare For A Massive Hike In Vehicle Prices

Asadullah  15 Jan 2022   365
Be Prepare For A Massive Hike In Vehicle Prices

Be Prepare For A Massive Hike In Vehicle Prices

Like other sectors, the auto sector of Pakistan is also going to face a huge price hikes on the vehicles from 0-1000cc to 2000cc. According to details, as the Federal government has passed the Finance (Supplementary) Bill 2021 which is also called Mini Budget. The government has announced to lift the tax exemptions in Federal Excise Duty FED and Sales tax and increased the taxes on the imported and locally assembled cars in Pakistan. 

Remember that the Govt announced the FED Duty discounts in the Auto Policy announced recently. But now, the govt is again going to implement the increased taxes on the cars. 

After the announcement and implementation of Finance Bill (Mini Budget), the revised rates of FED will be as follows:


Locally Assembled Cars FED

The federal government has implemented the following FED on locally assembled cars in Mini Budget:
 The FED increased up to 2.5% on 0-1300cc cars. Remember that the FED on 0-1000cc was 0%.
 From 1301cc to 2000c cars, the FED is increased by 5% and earlier the Duty on 1001ccto 2000cc was 2.5%.
 On the cars above 2000cc, the govt has increased FED up to 10% and previously it was 5.


GST on Hybrid and EVs

The government has increase General Sales Tax (GST) on locally assembled hybrid cars as given below according to the official document of the finance bill:
 8.5% on hybrid cars up to 1800cc
 12.75% on hybrids from 1801-2500cc
Meanwhile, for CBU/imported electric vehicles there is: 
 An increase of GST to 12.5% from the previous 5%.


RD on CBUs

This increase in taxes will cause the huge price hike of cars and will affect the buying power of the common man. The step came after the government increased Regulatory Duty (RD) on imported/CBU cars.
Here are the details: 
 RD on conventional engine cars over 850cc but not more than 1,800cc increased from 15% to 50%.
 RD on all CBU hybrids, with an engine capacity of over 1,500cc but not more than 1,800cc, increased from 15% to 50%, 
 Imposition of 10% RD on EVs with battery packs of over 50kWh. However, commercial trucks and buses are not included in it.

The general public is now to going to face another crisis in the local auto industry regarding the increase in the prices of CBUs or locally assembled car.

For more updates, news and articles from local and international auto sector stay connected with Gari.PK. You can also check the motorbike prices in Pakistan and Car Prices Pakistan for all used cars and new cars in the market.

Mini Budget Taxes and duties on cars New taxes Proposed taxes Tax increased on cars New Cars Auto Sector Finance Bill Sales Tax on Cars
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