As the automobile industry is already experiencing an increase in prices, here is another news! The government has announced an increase in the car sales tax rates in Pakistan on locally manufactured vehicles. Let’s explore all the information regarding this increase in the blog.
Exploring the Increase in Car Sales Tax
The upcoming finance bill 2025 to 2026 has a price increase in the sales taxes, leading to a burden on the buyer while purchasing. However, you need to know that this increase in the sales tax is on the 850cc cars that are locally made. The following are the percentages of present and increased rates:
- Present 850cc Car Sales Tax: 12.5%
- Increasing 850cc Car Sales Tax: 15 to 18%
Furthermore, you need to know that this price increase will be implemented from July 1, 2025, in Pakistan.
Impact of Price Increase on 850cc Car in Pakistan
The locally manufactured 850cc car in Pakistan is the Suzuki Alto, which is preferred for its high performance and affordability. Considering the sales, it has been noted that there is a decrease in the number of Suzuki Altos sold this year, which are 5,039 in January, 3,561 in February, 3,090 in March, and 2,276 in April.
Now that the increase in the sales tax on the 850cc cars is expected, there are higher chances of a drop in the sales of the Suzuki Alto.
Final Verdict
To sum this up, if people buy an 850cc engine car in Pakistan, it is because they look for an affordable option. This increase in car sales taxes in Pakistan on 850cc cars makes them no longer affordable for people, which is going to heavily impact the sales rate.
FAQs
The expected increase in the sales rate of 850cc cars in Pakistan is 15 to 18%.
This increase in the sales tax is only on locally manufactured 800cc cars such as the Suzuki Alto.
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