No Significant Reduction in Car Prices Despite Huge Incentives in The Budget
The Senate Standing Committee on Industries and Production has expressed its concerns over the insufficient reduction in prices of cars despite huge incentives availed by the car makers in budget 2021-22.
It noted that despite the fact that the car manufacturers were given huge incentives in budget, it didn’t reduce the prices enough. The committee, chaired by Senator Faisal Sabzwari, was briefed by the Industries and Production Division secretary.
Addressing the concerns regarding the high prices of the car, the secretary informed the committee that due to the measures taken by the government in the federal budget car prices have come down. He further added that because of the government’s initiatives to create a competitive environment, the prices aren’t as high as they could have been.
Moreover, he also informed the committee regarding the reduction in tax and duties on vehicles. The secretary added that duties on imported vehicles up to 1,000cc have also been slashed.
Some Incentives Provided in the Budget:
- Federal Excise Duty on all vehicles, including the ones above 1,000cc, reduced by 2.5%
- Sales tax reduced from 17% to 12.5% on vehicles below 1000cc.
- 7% additional customs duty removed on cars below 1000cc while it has been reduced by 2% on cars above 1000cc.