List of expected reduced prices of all cars in Pakistan after new auto policy [LIST]

The government has also reduced the  Federal Excise Duty (FED) by 2.5 percent for vehicles with an engine displacement over 1000cc

The all-new auto policy intends to promote the sale and purchase of smaller and more environmentally-friendly vehicles. With this intention, the government has announced several duties and tax rate reliefs for all automakers manufacturing and selling cars with engine displacement up to 1000cc, hybrid vehicles, and electric vehicles (EVs) in Pakistan.

The government has also reduced the  Federal Excise Duty (FED) by 2.5 percent for vehicles with an engine displacement over 1000cc. The FED rates, in particular, have been impacted as follows:

  • For 660cc to 1000cc vehicles, the FED has gone down from 2.5 percent to 0 percent. The said segment also gets a concession of 4.5 percent on the General Sales Tax, which implies that the on-ground price discount for the said segment should be slightly less than 7 percent.
  • For 1001cc to 2000cc vehicles, the FED has gone down from 5.0 percent to 2.5 percent.
  • For vehicles over 2000cc, the FED has gone down from 7.5 percent to 5 percent.

All these concessions are likely to impact the vehicle prices across the board in Pakistan directly.

Here are the expected reduced prices of all locally assembled passenger vehicles (please note that these are expected prices and not confirmed):

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Experts believe that with the reduction of FED and GST on the imports of CKD kits of all vehicles, the production costs of cars will be reduced significantly. Auto experts are further speculating that these concessions will pave the way for a massive influx of new small and hybrid vehicles in the market. All of this will positively impact the Pakistani auto industry.

Increased competition in the market will push automakers to bring in desirable and better-quality products to grab the lion’s share in the market. It is safe to say that things are looking up for Pakistan’s auto sector.

What are your thoughts on this? Please share with us in the comment section below.


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