The government has implemented new taxes on vehicles as part of the new financial year, making it more expensive for consumers to purchase a car. These changes include:
- Regulatory Duty: A new regulatory duty has been introduced on imported vehicles and spare parts.
- Increased Taxes on Locally Made Vehicles: The government has also raised tax rates on vehicles manufactured in Pakistan.
New Fixed Tax System:
The previous fixed tax amounts on locally manufactured vehicles have been replaced with a new fixed tax system based on engine capacity:
- Up to 850 cc: 5% tax (previously fixed amount of 10,000 PKR)
- 851 to 1,000 cc: 1% tax (previously fixed amount of 20,000 PKR)
- 1,001 to 1,300 cc: 1.5% tax (previously fixed amount of 25,000 PKR)
- 1,301 to 1,600 cc: 2% tax (previously fixed amount of 50,000 PKR)
- 1,601 to 1,800 cc: 3% tax (previously fixed amount of 150,000 PKR)
- 1,801 to 2,000 cc: 5% tax (previously fixed amount of 200,000 PKR)
Significant Tax Increases on Larger Engines:
For larger engine vehicles, the tax increases are more substantial:
- 2,001 to 2,500 cc: 7% tax (previously 1% tax)
- 2,501 to 3,000 cc: 9% tax (previously 1% tax)
- Above 3,000 cc: 12% tax (previously 2% tax)
These changes are expected to make it more expensive for consumers to purchase new vehicles, potentially impacting the auto industry in Pakistan.
