Federal excise duty removed and sales tax reduced for 850cc cars in Pakistan. Here are the new prices
Here are the new prices!
Recently, the Federal Finance Minister Shaukat Tarin announced tax reductions for locally assembled cars up to 850cc. According to details, the FED (Federal Excise Duty) has been removed, while the Sales Tax has been reduced to 12.5% from 17% on these cars. These adjustments mean that prices of the Suzuki Alto, the United Bravo, and the Prince Pearl will decrease, making the cars cheaper.
Here are the new expected prices of the vehicles:
Price of the Suzuki Alto Variants
The old price of the Alto VX was Rs. 1,198,000, and now the car will cost Rs. 1,124,000.
The previous rate of the Alto VXR was Rs. 1,433,000, while its revised price is Rs. 1,345,000.
Lastly, the Alto VXL used to be sold at Rs. 1,633,000; however, it will now cost Rs. 1,530,000.
Price of the Prince Pearl
The old price of the Prince Pearl was Rs. 1,149,000; however, the vehicle will now be sold for Rs. 1,077,000.
Price of the United Bravo
Previously, the United Bravo was priced at Rs. 1,099,000, but the new rate of the car will be Rs. 1,030,000.
How will the new prices affect the Pakistani auto market?
Reduction in the car prices in this bracket has not happened before in the history of the car industry in Pakistan. Reports have never read that taxes have been reduced on locally manufactured cars. However, this year, the government has slashed the taxes, resulting in a vehicle price reduction of up to Rs. 1,10,000.
Experts believe that the new prices of the vehicles will significantly impact the local car market because the 850cc cars are usually the most affordable for many people. The sales of these vehicles will increase as they will now come in the buying power of the consumers.
On the other hand, the government has not proposed any tax relaxation for imported cars. According to experts, this move indicates that the government wants to push Pakistanis to buy local vehicles.
What are your thoughts on this? Please share with us in the comment section below.