The budget for 2021-22 has been revealed, revealing a number of anticipated policy changes. There has been speculation regarding the changes that are expected in the new auto policy, since it has been widely reported that local vehicle prices may finally stabilize.
The government has announced that the Federal Excise Duty (FED) on domestically built cars with an engine displacement of 850cc or less has been eliminated. Prior to the development, the duty rate was 2.5 percent. Federal Finance Minister Shaukat Tareen also stated during the session that the sales tax on the aforementioned sector of automobiles has been reduced from 17 percent to 12.5 percent, resulting in a 4.5 percent reduction in tax rates.
Under these 03 programmed, old and secondhand Asian-made vehicles can be imported against payment of the following amounts:
S.No.
Vehicles of Asian Makes meant for transportation of persons
Duty and Taxes in US$ or equivalent amount in Pak
01.
Upto 800 cc
US$ 4,800
02.
801cc to 1000cc
US$6,000
03.
From 1001 cc to 1300cc
US$13,200
04.
From 1301cc to 1500cc
US$18,590
05.
From 1501cc to 1600cc
US$22,550
06.
From 1601cc to 1800cc (Excluding Jeeps)
US$27,940
According to reports, HM Shehzad, Chairman of the All Pakistan Motor Dealers Association (APDMA), recently recommended that the government make modifications to the new car policy that would be adopted when the 2021-22 budget is presented.
Electric vehicles:
Electric car imports would be free from VAT, but domestically made electric vehicles will be subject to a 1% sales tax. The government would also levy a “on money” tax on automobiles that are sold without being registered. “On money” or premium refers to a procedure in which anxious customers with extra funds pay a premium to vehicle dealers in exchange for immediate delivery rather than waiting months.
Tarin proposed measures for electric vehicles during his budget address, saying that the government was supporting the usage and manufacture of electric vehicles to reduce reliance on gasoline, offer inexpensive transportation to the general people, and minimise environmental effect. To achieve these aims, substantial tax relief measures for electric cars were proposed, including a tax exemption on the import of fully knocked down (CKD) kits for local electric vehicle production.
In addition, the sales tax on domestically made electric vehicles was reduced from 17 percent to 1 percent, while the value added tax on imported electric vehicles was eliminated. Electric cars will also be exempt from federal excise taxes. Hanif emphasized that tax breaks and exemptions for electric cars will help to create a more fuel-efficient and environmentally friendly economy.
Al-Haj Rolls Out the First Locally Assembled Proton-X70
January 20, 2022 / By Zunair Tahir / News Pakistan
Through its state-of-the-art car assembly factory, Al-Haj Automotive (Proton Pakistan) has finally rolled out the first locally made Proton X70. It is described by Proton as “the first intelligent SUV to be produced in Pakistan.”
After a lengthy wait, the locally manufactured Proton X70 has finally begun to roll off the production lines. The car was first introduced in Pakistan in December 2020, and many clients are still waiting for CKD manufactured units to arrive. The official Proton Pakistan website, however, states that delivery of the locally produced X70 would begin in March 2022.
PRICE:
The X70 SUV is now available in two models:
Customers in Pakistan may rejoice, since there is a strong indication that the SUV would be available in showrooms soon as a locally produced version.
Executive All-Wheel Drive (AWD) that costs PKR. 4,590,000
Premium Front Wheel Drive (FWD) that costs PKR. 4,890,000
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Proton Price List In Pakistan
Although Proton claims the X70 as Pakistan’s first intelligent SUV, the honor goes to the DFSK Glory 580 Pro, an intelligent 7-seat CUV with 100 voice commands, including 28 that are particularly suited for Pakistan. Furthermore, the car has already been in the hands of Pakistani clients for almost a year.
Furthermore, as automakers in Pakistan are already in the process of announcing updated pricing, the impact of the current tariffs and taxes imposed by the government in the recently approved supplementary finance bill is likely to be felt on both Saga and X70. Al-Haj Proton, on the other hand, has yet to release new prices for its models.
January 18, 2022 / By Zunair Tahir / News Pakistan
Pak Suzuki is expected to unveil the new Swift next month, after a ten-year hiatus. Suzuki will launch the Swift in Pakistan with a 1250cc K12C twin jet inline-4 engine mated to a 5-speed CVT or manual transmission, according to trustworthy sources. Despite the fact that the Swift, like the rest of the globe, has a 1000cc turbo engine, Pakistan looks to be getting the 1250CC variant.
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Suzuki Price List In Pakistan
Furthermore, the Swift formerly had a displacement of 1395cc, and owners were required to pay a higher token tax, which had an effect on sales to some extent. Because of the decreased tax rate, customers in Pakistan will now benefit from the 1250cc engine displacement.
According to rumours, the hatchback would cost between Rs. 2.7 million and Rs. 2.8 million. Furthermore, most Pakistanis prefer sedans to hatchbacks since sedans offer larger trunk space.
However, in order to demonstrate that the new Swift is a valuable addition to the local market, it must be priced competitively. Pak Suzuki is certain, according to insiders, that the new Swift would be warmly accepted by local car purchasers.
According to Profit, Pak Suzuki spent Rs 4.5 billion on capital expenditures in the first nine months of calendar year 2021, up 5.7 times year on year. Capex (Capital Expenditure) refers to monies used by businesses to update and maintain physical assets such as plants and buildings, as well as to support new initiatives and investments. The greater capex indicates at Pak Suzuki’s plans to replace the 2nd generation Swift in our market with the 4th generation model, as previously stated.
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%.
December 29, 2021 / By Zunair Tahir / News Pakistan
In Pakistan, Master Changan will introduce the Oshan X7 Plus SUV.
Oshan X7 Plus’s explosive entry against “Fortune” and “Sorrento”
Compared to Oshan X7, “Oshan X7 Plus” looks like a bigger and more powerful vehicle. Right hand drive vehicles will also be manufactured and sold in Pakistan.
Last month, Master Changan Motors Limited (MCML) released several designs of an SUV without revealing its name. However, it became clear that the firm is planning to introduce a new SUV. Finally, the Oshan X7 Plus, the company’s latest product, has been revealed.
Gallery
The Oshan X7 Plus appears to be a more substantial version of the Oshan X7. This SUV will compete with the Toyota Fortuner and the Kia Sorento 3rd Generation due to its overall attractiveness and size.
Pakistan will be the first market outside of China to receive the Oshan X7 Plus, according to the manufacturer. Master Changan also intends to export the RHD version of this SUV from Pakistan to other foreign markets.
The SUV will most likely be available in 5- and 7-seat configurations. It will be powered by a 1.5-liter turbocharged engine from Changan’s newest blue whale series, which generates 178 horsepower and 300 Nm torque and can accelerate from 0 to 100 kilometers per hour in 8.23 seconds.
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Changan also boasts that this beefed-up SUV would have an incredible 14 kilometres per litre in fuel economy. This is comparable to the average fuel consumption of other basic sedans. Other cars being tested by the business include the Hunter double cabin and the UNI-T crossover, both of which are expected to be released in the near future.
The pricing of the Changan Oshan X7 Plus, however, has yet to be revealed. Given its cutting-edge style and features, it’s safe to assume that this SUV will come with a premium price tag.
With a slew of new SUVs set to hit the market in 2021, Pakistan’s SUV market is booming. It would be interesting to see how Changan’s new product does in Pakistan.
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