Car and vehicles to potentially become cheaper after government mulls to cut back taxes

The former will be done by either excluding 7% additional customs duty or decreasing the customs duty by the equivalent percentage.

1

Sindh Excise Dept to Launch Online Tax Payment Service for the Car OwnersThe prices of new imported and regionally assembled cars of up to 800cc engine capacity are expected to decrease in the coming future.

This is due to the government’s plan to decrease the taxes on these cars and bring them within the buying power of the middle class.

How Do I Tax My Car & How Much Car Tax Should I Pay? - Swansway Group

The proposal attempts to lower import duties and taxes on freshly imported cars by up to 63% and decrease them by nearly 7% for regionally made cars.

The proposal also includes eliminating 50% regulatory duty and 2.5% federal excise duty on freshly imported cars.

The former will be done by either excluding 7% additional customs duty or decreasing the customs duty by the equivalent percentage.

Additionally, there is a plan to remove the 5% withholding tax and decrease the usual general sales tax (GST) percentage of 17% to 12% on the import of latest cars of up to 800cc.

Car road tax: your guide to Vehicle Excise Duty (VED) | Parkers

The current combined taxes and tariffs on freshly imported cars of up to 800cc are roughly 132% of the price.

If this proposal is achieved, these will come down by 63% of the value of imported cars.

Meanwhile, there is also a proposal to eliminate 2.5% federal excise duty, decrease the GST rate to 12% and remove ₨. 7,500 advance income tax on regionally made cars of up to 800cc.

Vehicle Taxes In Pakistan: Types, Rates & More | Zameen Blog

Nevertheless, various factions have begun lobbying against the plan and the subject is now to be addressed by the finance minister and the prime minister for a resolution.

One recommendation is that to recompense for some of the revenue losses, the duty rates of 1,300cc and beyond may be extended.

It is pertinent to note that there has been a penetration of imports of mainly expensive brands in the current fiscal year.

What are your views on this? Share with us in the comments below.


  • Featured Content⭐


    Most viewed in last 24 hours


    24 گھنٹوں کے دوران 🔥


    >