The government will reduce taxes and duties in the fiscal year 2021-22 on cars below 850cc engine size, which are assembled in Pakistan. This will affect the prices of Suzuki Alto, Ravi, Bolan, Prince Pearl, and United Bravo.
The change in the tax regime excludes imported used cars in the category such as Mira, Wagon R, Alto, and N – One. Finance Minister Shaukat Tarin announced these details while presenting the budget on Friday.
The Federal Excise Duty (FED) of 2.5% has been removed and Sales Tax has been reduced to 12.5% from 17% on cars below 850cc, also called entry-level cars. “The cars below 850cc may see a price decrease of around 5% or 6%,” said Mashood Khan, an auto sector analyst. “This will be a good price cut for people who buy cars in this category. “A6% change in the price of Alto’s top variant will amount to nearly Rs 100,000.
