Presently, the auto division is accountable to pay 7 percent ACD on the introduce of spare parts. The average income earners in Pakistan are probable to spend up to 10 lacs for purchase a new inexpensive car and automobile manufacturers cater to this particular target audience since we see a assortment of rationally priced cars running on the roads.
Federal Excise Duty on cars:
- 2.5% on cars up to 1000cc
- 5% on cars between 1000cc and 2000cc
- 7.5% on vehicles above 2000cc
Along with this, there is a 17% sales tax.
The government had been compulsory high taxes and duties on import vehicles in order to put away the local assemblers, which according to consumers are charge higher prices of their crop in Pakistan. The government’s present Auto Development Policy has specified a push to healthy opposition and Several car companies such as Kia, Hyundai, and Changan have enter the Pakistan market.
Pakistan Customs Tariff (PCT) categories:
Electric Auto Rickshaw (8703.8030)
Electric Motorcycle (8711.6040)
3-wheeler Electric-loader (8711.6060)
Engineering Development Board General Manager Asim Ayaz thought that the small (entry-level) cars have been deserted in the past. The new policy will center on the manufacturing of entry-level cars and good thing is that the prices of the imported cars of up to 800cc may cut by 3 Lac to 4 Lac if the suggestion is implemented.