Cars Exemption From New Capital Value Tax

Ayesha

15 Jul 2022

508

Cars Exemption From New Capital Value Tax

Federal Government has announced the enactment of 1 percent Capital Value Tax (CVT) on car, which have the engines larger than 1300 cc and electric vehicles (EVs) with the battery packs, which are larger than 50kW and it is enforced from 01 July 2022.

The government has suggested 2% CVT on the vehicles, which have the price tag over Rs.5 million. The government has applied these taxes on the high-end vehicles with smaller turbocharged engines including Proton X70, MG HS, H6 and Haval Jolion.

The CVT was reduced to 1% on the cars with the engine displacement over 1300 cc and there are some other reports, FBR decreased the CVT from 2% to 1% to give the advantage to the public. The market has the idea to impose new tax, which can make the matters worse for the car buyers, who look for the economy cars.

The customers can find the cars exemption from new capital value tax, which are mentioned as follows:

• Suzuki Alto

• Wagon R

• Cultus

• Swift

• Bolan

• Ravi

• Kia Picanto

• United Bravo

• Alpha

• Prince Pearl

• Proton Saga (1298cc)