Automotive News

Mini budget ! how much tax on cars?

Mini budget ! how much tax on cars?

December 31, 2021 / By Zunair Tahir / News Pakistan

The Finance Supplementary Bill (Mini Budget) to be introduced in the National Assembly has been approved by the Federal Government.

The government has proposed the following for locally assembled cars:

  • Federal Excuse Duty (FED) on locally assembled cars up to 1000cc to remain 0%
  •  FED increase to 5% from 2.5% on 1001cc to 2000cc cars.
  • FED on cars above 2000cc increase to 10% from 5%

Meanwhile, the FED on CBU cars is as follows:

  • FED on cars up to 1000cc will remain 0%.
  •  FED on cars of 1001cc to 1799cc will increased to 10% from 5%
  • FED on 1800cc to 3000cc cars will increase to 30% from 25%
  • FED on cars above 3000cc increased to 40% from 30%

New taxes have been imposed on vehicles in the mini-budget. The federal government has proposed to impose a tax of Rs 100,000 on vehicles up to 1,000 cc in the mini-budget.

In the mini budget, tax exemptions on various services in Islamabad have been abolished, including the auto industry.
It is proposed to impose 5% tax on cars, automobiles and dealers. Rs. 200,000 for vehicles over 1,000 cc and Rs. 400,000 for vehicles over 2,000 cc.

He said that computers, sewing machines, iodized salt and red pepper would be taxed and the common man would be affected by the tax on a few items including salt and pepper.
Shaukat Tareen said that the tax exemption of Rs. 343 billion has been revised in the bill, the people will not be burdened with taxes. Will grow

It should be noted that during the first five months of the current financial year, car sales in the country have increased by 61%.

According to the Pakistan Automobile Manufacturing Association (PAMA), a representative body of car manufacturers in the country, car sales have increased by 61% in the first five months of the current financial year.

During the first five months of the current financial year (July-November), 90,303 new cars were sold across the country, compared to 55,779 in the same period last year. Thus, the growth rate of car sales has been more than 61%.

The number of vehicles imported by automakers has increased by 83%

The number of vehicles imported by automakers has increased by 83%

June 23, 2021 / By Zunair Tahir / Automotive News

According to the study, auto-industry imports totaled $2.624 billion in the first eleven months of FY 2020-21, compared to $1.431 billion in the first eleven months of FY 2019-20.

The value of CKD/SKD car imports in this year was $2.180 billion, up 86.72 percent from the previous year. CBU imports grew by 81.29 percent, with a value of $336.941 million compared to $185.861 million previous year.



According to industry observers, the recent flood of new cars may have caused such a huge spike in the value and volume of vehicle imports. In the previous year, almost two dozen new cars were released to the Pakistani market, the majority of which are SUVs, but virtually all of them cost more than PKR. 4 million.

The government is turning its attention to encouraging the sale and purchase of smaller, more environmentally friendly automobiles in order to decrease the high import bill.

The All Pakistan Motor Dealers Association (APMDA), on the other hand, is advocating for a change of the import rules to encourage car imports. H.M. Shehzad, the Chairman of the APMDA, wrote to the Ministry of Finance (MOF) around two weeks ago to suggest modifications to the new car policy that would take effect after the presentation of the 2021-22 budget.

He went on to say that the newcomers are also raising costs, delaying car deliveries, and “fleecing the consumers in the form of Own-Money” for early deliveries of their automobiles.

Shehzad proposed that the government encourage the import of automobiles into Pakistan to promote healthy competition in the market and to raise the quality standards of current automakers.



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