After much deliberation, the government has finally made it official – Sales Tax rate on locally-assembled 1,400cc and above vehicles will now be 25%, instead of the previous 18%. This is an increase of 7% and it has the potential to increase the existing car prices by way more than 7%.
On March 8, 2023, the federal government through an S.R.O., massively increased the Sales Tax rate on a variety of items, including luxury items like private jets and imported furniture, and items which aren’t considered luxury by many such as ice cream and ketchup. In addition, the new tax rate was slapped on lock, stock and barrel on all imported (CBU) vehicles and locally-assembled 1,400cc and above automobiles, CUVs, SUVs and double-cabin pick-ups.
If you would like to know about the general impact of this tax rate hike in Pakistan, read:
Sales Tax Increased on 33 Categories of “Luxury Items”, Including Private Jets, Ketchup & Ice Cream
Below, you will find information on the current prices which have already been increased and those prices which are expected to be increased in the coming days and weeks.
Toyota Car Prices
KIA Car Prices
Haval & BAIC Prices
Peugeot Prices
Expected Increase
While the above have already jacked up their prices, the following companies haven’t and hence their expected increase is as follows.
The auto industry has been experiencing low sales for a long time due to a variety of factors, including very high prices. Now, as the prices will further go up, their sales will nosedive altogether. Though this may do wonders for the sales of used cars in Pakistan. If you are interested in buying a used car, do check out OLX Pakistan Motors listings.
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