Please enable JavaScript to get all features available.

Expected Price Hike For Imported Cars After New Fixed Tax

28 Jun 2023   1178
Expected Price Hike For Imported Cars After New Fixed Tax

Expected Price Hike For Imported Cars After New Fixed Tax

The Finance Bill 2023 has gained significant attention, especially within the auto industry, as Finance Minister Ishaq Dar announced a new tax for cars over 2001cc. The bill aims to increase the overall tax net of the country in line with the directives of the International Monetary Fund (IMF). Let's explore the key provisions of this new taxation scheme:


Tax Rates based on Engine Capacity

  • 6% tax on vehicles with engine capacities from 2001cc to 2500cc.
  • 8% tax on vehicles with engine capacities from 2501cc to 3000cc.
  • 10% tax on vehicles with engine capacities exceeding 3000cc.


Implementation of the Tax

The tax will be implemented through the following practices:
  • Import Value Assessment: The Customs department will evaluate the import value of cars with engine capacities exceeding 2001cc. This import value will be used to determine the applicable Customs Duty, Federal Excise Duty (FED), and Sales tax.
  • Consideration of Invoice Value: For both Completely Built-up (CBU) and locally assembled cars with engine capacities above 2001cc, the invoice value, which includes all duties and taxes, will be taken into consideration.
  • Value-based Tax for High-Value Vehicles: In cases where engine capacity is not relevant, and the value of vehicles is Rs. 5 million or higher, a tax rate of 3% will be imposed on the import value (including the revised Customs Duty, FED, and Sales tax for imported vehicles) or the invoice value (for locally assembled vehicles).


Tax Levy on Sale and Registration

  • Sale of Locally Manufactured Vehicles: If a locally manufactured vehicle is sold by the original purchaser before registration, the motor vehicle registering authority will levy taxes at the specified rates during the registration process.
  • Advance Taxes by Manufacturers: Manufacturers of motor vehicles are required to collect advance taxes from buyers at the specified rate during the sale of motor cars or jeeps.
These measures introduced in the Finance Bill 2023 aim to enhance revenue collection and align with the broader economic goals of the country.


Expected Price of Imported Cars 

In the table below, we present the anticipated price increase for imported cars after the implementation of the New Fixed Tax.

List of Cars
Variant
Engine capacity 
Ex. Factory Price
New Fixed Tax
%
2199 cc
8,909,000
534,540
6%
2487 cc
53,859,000
3,231,540
 
2755 cc
59,109,000
4,728,720
8%
Toyota Prado
2755 cc
67,249,000
5,379,920
 
3470 cc
16,750,000
1,675,000
10%
3445 cc
156,829,000
15,682,900
 
4009 cc
26,789,000
2,678,900
 

Related Auto News Updates



Add a Comment "Expected Price Hike For Imported Cars After New Fixed Tax"

Name *
Contact No *
Email *
City *
Comment *
Question: What is capital of Pakistan?

(Answer can be from islamabad | lahore)
Comments

New 2025 Car Comparisons