For the last two to three years, the Pakistani automobile market is witnessing a huge rise. Either it’s KIA or Hyundai or Changan, people are buying cars rapidly. Along with this, many people are yearning for more affordable and cheap cars in the market. In this regard, the good news is coming that the 800cc or fewer cars will get cheaper in the coming budget 2021.
According to the sources, the federal government is considering reducing the taxes on vehicles with 800cc displacement or lesser. This decision is in consideration to facilitate the middle class and increase the buying power of their own vehicle.
If the proposal is enacted, then the cars up to 800cc will get 63% cheaper according to their current prices. The taxes on locally assembled cars are expected to reduce to 7%.
The proposal for this purpose is under process. According to reports, the new policy will reduce the import duties and taxes for only new cars of the 800cc or lesser category up to 63%. Whereas, the taxes on locally assembled cars will be reduced to 7%.
Moreover, the proposal also suggests the abolishment of 50% tax on regulatory duties, 7% on custom duties and 2.5% on federal excise duties. Furthermore, the draft also advocates the suspension of 5% on WHT. The GST will reduce from 17 to 12% on the import of cars of 800cc or lesser displacement.
The report also holds the information of all the combined taxes and duties on the new imported cars of the above-mentioned category i.e. about 132% of the prices of these cars. If the proposal is enacted, it is expected that the taxes will be reduced by 63% of the value of these cars. It will be a big blow and will provide a huge benefit to the general public.
Lastly, the overall proposal seems very good for the people who want to have their own car at cheap rates. These 800cc cars that are cheaper and affordable will be accessible to the middle-class public after the budget of 2021. Hope for the best!