Car Prices Likely To Go Down By 100K to 400K
Following the recent reduction in car prices due to the incentives provided in the federal budget, prices are likely to go down further . This is because the government is considering proposals to reduce the Additional Customs Duty (ACD) and Regulatory Duty (RD) on different brands of cars.
These proposals are part of the upcoming Auto Development Policy (ADP) for 2021-26. The car prices are likely to go down further ranging from Rs100,000 to Rs400,000 on different engine capacities
The main aim of the upcoming ADP 2021-26 is to provide maximum incentives to the new entrants and enable the auto industry to export motorcycles from Pakistan followed by cars and tractors.
Although, this reduction in different taxes is just a small part of the upcoming auto policy 2021-26 it is expected to bring down the prices of different cars significantly.
These are just proposals and the federal cabinet will decide how much approval will be given for the reduction of taxes.
Different Proposals To Reduce Taxes:
The government is planning to reduce the Additional Customs Duty (ACD) on Completely Built Unit (CBU) to zero for cars having engine capacity of 1000cc and below.
The ACD on CBU will be brought down to 2 percent for the cars having engine capacity of 1001cc and above. Similar proposals are in consideration for the reduction of ACD on Completely Knocked Down (CKD) kits on imports and local manufacturing.
Furthermore, the Regulatory Duty (RD) is also expected to be brought down for the cars having engine capacity of 1800cc and below. For 1801cc and above, the ACD on CBU will be fixed at 30 percent.
Expected Reduction in The Prices of Different Cars:
The current price of the Alto 660cc is Rs11,98,000. It’s price is expected to go down by Rs104,458 after the reduction in Federal Excise Duty (FED) of Rs29,950, Sales Tax Rs53,910 and Additional Customs Duty of Rs20,965. The new price is expected to be Rs1,093,542.
The current price of the Alto VXR 660 is Rs1,633,000. It’s price is expected to go down by Rs142,388 after the reduction of Rs40,825 FED, Rs73,485 Sales Tax and Rs28,578 ACD. The new price is expected to be Rs 1,490,613.
The current price of Cultus AGS 1000cc is Rs2,130,000. The FED, Sales Tax and ACD is expected to be reduced by Rs53,250, Rs95,850 and Rs37,275 respectively. It’s price will likely be going down by Rs186,375 making its new price stand at Rs1,943,625.
The current price of the City 1.3 Automatic, Rs2,639,000, is expected to go down by Rs112,158 after the reduction in different taxes and it’s expected new price will be Rs2,526,843.
The current price of Yaris AT, Rs2,999,000, is expected to go down by Rs127,558 and new price will be around Rs2,871,543.
The current price of Grande 1.8 is expected to go down from Rs3,999,000 to Rs3,829,043.
The current price of Sportage AWT 2 is expected to go down from Rs5,399,000 to Rs 5,264,026.
The current price of Toyota Fortuner is expected to go down from Rs9,299,000 to Rs8,903,793.