Cars New Price after Tax Discounts in New Auto Policy 2022
Tax relief for the auto sector is probable to be improved for cars up to 1,000cc in the Finance Bill 2022, with the aim of promote affordable cars and localization in the country. Due to the incentives provide to the new car company under the Automotive Development Policy (ADP) 2016-21, the car market now has numerous new and interesting products that have twisted a more spirited environment.
The Additional Customs Duty (ACD) on the CKD kits of all vehicles has supposedly been brought down from 7 percent to 2 percent. The Finance Bill presented in the National Assembly planned tax measures for vehicles up to 850cc under the Customs Revenue Measures and suggested exception of Additional Customs Duty (ACD) and Regulatory Duties (RD).
The statement and approval of the 2022-22 budgets has spark debates among car enthusiasts, analysts, and casual car buyers for superior reason as the government has announced certain reliefs for the local auto industry that could considerably lower the prices of cars in Pakistan.
All Cars
For 660 cc to 1000 cc vehicles, the FED has gone down from 2.5 % to 0 %.
For 1001 cc to 2000 cc vehicles, the FED has gone down from 5.0 % to 2.5 %.
For 2001 cc to 3500 cc vehicles, the FED has gone down from 7.5 % to 5 %.
50% exemption from duty & taxes is admissible on introduce of Hybrid Electric Vehicles (HEVs) of engine ability up to 1800cc and 25% exemption from duty & taxes is admissible on introduction of HEVs of engine capacity from 1800cc to 2500cc.
The government charges duties on import CKDs (completely knockdown units), the auto parts used in assemble cars. All costing over Rs. 2 million each and many are for fine over Rs. 3.5 million, put them out of the reach of a good quality chunk of local car buyers.
