Vehicle prices are expected to rise further as a result of proposed duties and taxes on the auto sector in the National Assembly’s mini-budget (NA).
According to the details, the government proposed raising the Federal Excise Duty (FED), advance tax, transfer tax, and other duties through the finance supplementary bill, making locally manufactured cars significantly more expensive.
Previously, the government reduced taxes by lowering FED on all vehicles as well as sales tax on cars under 1000cc, resulting in lower overall prices and increased sales.
It may be mentioned here that the tax on the electric vehicle (EV) parts would not be increased although EVs up to 1800cc would be taxed at the rate of 12.5 percent instead of the current 5pc. Similarly, the bill also proposes to tax hybrid electric vehicles above 1800cc at 17pc.
