ISLAMABAD: In 39th Session held on Thursday December 30, 2021, the National Assembly passed the amendments in finance bill and increased the sales tax and federal excise duty (FED) on cars.
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Amendments related to FED and sales tax on cares related to Pak Suzuki Motors are as follows;
• FED increased on CBUs from 5.0 percent to 10.0 percent on 1,001cc to 1,799cc
• FED increased on CBUs from 25.0 percent to 30.0 percent on 1,800cc to 3,000cc
• FED increased on CBUs from 30.0 percent to 40.0 percent on 3,000cc and above
• FED increased on locally assembled vehicles from 2.5 percent to 5.0 percent on 1,001cc to 2,000cc
• GST to be increased on locally manufactured cars above 850cc from 12.5% to 17%.
After imposition of new FED, the prices of Cultus are expected to increase by PKR 76,000 to PKR 91,000. The prices of Wagon-R are expected to increase by PKR 70,000 to PKR 81,000 due to rise on FED. The prices of all variants of Alto have no impact of this bill because all changes are made on above 850cc