Lahore (Pakistan News Online) The federal government has once again increased taxes on vehicles in the new budget, leading to a rise in prices.
Details reveal that the government has introduced a new withholding tax on locally manufactured vehicles. The Finance Minister stated that the tax will now be imposed based on the ex-factory price of the vehicle, instead of the engine capacity as it was previously.
For vehicles up to 850cc, which includes the Alto VX, a tax of 0.50% of the price will be levied, amounting to 12,500 rupees, up from the previous 10,000 rupees. For vehicles between 851cc and 1000cc, a tax of 1% of the price will be imposed, equating to 38,580 rupees, compared to the previous 20,000 rupees.
For vehicles between 1001cc and 1300cc, a 1.50% tax on the price will be applied, amounting to 56,985 rupees, up from 25,000 rupees. For vehicles between 1301cc and 1600cc, a 2% tax on the price will be levied, totaling 81,585 rupees, up from the previous 50,000 rupees. This means the Honda City will now be 31,000 rupees more expensive.
For vehicles between 1601cc and 1800cc, a 3% tax on the price will be applied, amounting to 225,270 rupees, compared to the previous 150,000 rupees. This makes the Toyota Grande 75,000 rupees more expensive.
Similarly, for vehicles between 1801cc and 2000cc, the tax has increased to 346,500 rupees, for vehicles between 2001cc and 2500cc, the tax has risen to 765,100 rupees, for vehicles between 2501cc and 3000cc, the tax is now 956,720 rupees, and for vehicles over 3000cc, the tax has reached 1,139,880 rupees.
Following this formula, MG has also increased the prices of their vehicles. The price of the MG HS Essence, which was previously 8,099,000 rupees, has increased to 8,260,980 rupees after the 2% withholding tax was applied.