Budget 2024-25: Impact on Imported Used HEVs in Pakistan

Jawad

20 Jun 2024

607

Budget 2024-25: Impact on Imported Used HEVs in Pakistan

The budget for 2024-25 was announced , and it brings unwelcome news for the automobile industry. With the introduction of new taxes and hefty Withholding Tax (WHT), the government has also reduced customs duty exemptions on imported Hybrid Electric Vehicles (HEVs). Here, we provide an overview of the new and revised customs duties on popular imported HEVs.

Exemption Policy for Imported HEVs: Then and Now

Back in 2013, the government introduced a 50% exemption on customs duties for all imported HEVs. For example, if the duty on a 1500cc car was $6,000, you would only pay $3,000 for a 1500cc HEV. However, in the 2024-25 budget, this exemption has been removed. Customers must now pay the full 100% duty on imported HEVs without any discounts.

Revised Custom Duties on Popular Imported HEVs

Toyota Aqua

Previously, importing a Toyota Aqua 2021-24 model cost between 6 and 8 million PKR. The duty on its 1500cc engine was US$18,590 or 5.2 million PKR. Due to the 50% exemption, the duty was reduced to 2.6 million PKR. Now, with the removal of the exemption, the full duty of 5.2 million PKR will be applied.

Example: Toyota Aqua Z 2022 model with 12,000 Km on the odometer.

Vehicle	Model	Previous Duty	Expected Changes	Difference
AQUA NHP10	2021	2,550,000.00	3,725,000.00	1,175,000

Toyota Prius

A 2011 model Toyota Prius S could earlier be imported for 3.2-3.6 million PKR. The duty on its 1800cc engine was 7.8 million PKR, halved to 3.9 million PKR with the exemption. Now, under the new budget, the full duty of 7.8 million PKR will be enforced.

Example: Toyota Prius G 2014 model with 175,000 Km on the odometer.

Vehicle	Model	Previous Duty	Expected Changes	Difference
PRIUS ZVW51	2021	3,690,000.00	5,500,000.00	1,810,000.00

Honda Vezel

The Honda Vezel, a popular HEV crossover, had a previous duty of 2.6 million PKR with the 50% exemption, while the actual duty was 5.2 million PKR. With the new budget, the full duty of 5.2 million PKR will be applicable, making the car cost around 8.6 million PKR.

Example: Honda Vezel RS 2018 model with 28,000 Km on the odometer.

Vehicle Model Previous Duty Expected Changes Difference
VEZEL RU3 2019 2,450,000.00 3,540,000.00 1,090,000.00

Toyota C-HR

The Toyota C-HR, a compact hybrid crossover with a 1500cc engine, also faces increased costs under the new budget. This model, which shares its platform with the 12th generation Corolla but features additional enhancements, will now be subject to the full customs duty without any exemption.

Vehicle	Model	Previous Duty	Expected Changes	Difference
CHR ZYX10	2019	2,830,000.00	4,235,000.00	1,405,000.00

Toyota Sienta

The Toyota Sienta, a hybrid MPV van ideal for long tours and intercity travel, is another model impacted by the new budget. Previously considered a step up from the Toyota Aqua G in MPV form, the Sienta will also be subject to full customs duties, increasing its overall cost significantly.

Vehicle	Model	Previous Duty	Expected Changes	Difference
SIENTA	2019	2,230,000.00	3,200,000.00	970,000.00

Conclusion

The 2024-25 budget has significantly impacted the affordability of imported HEVs in Pakistan. With the removal of the 50% customs duty exemption, the costs for popular models like the Toyota Aqua, Prius, Honda Vezel, Toyota C-HR, and Toyota Sienta have surged, posing a challenge for prospective buyers and the automobile industry at large.