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%.