BusinessLatestPakistan

Tax exemption on small vehicles, how much will the prices come down?

By Web Desk

ISLAMABAD : The federal government has announced in the budget to reduce the federal excise duty and sales tax from 17% to 12.5%.

 

 

Finance Minister Shaukat Tareen had announced during his budget speech that excise duty on locally made 850 cc vehicles would be waived. In addition, the sales tax rate of 12.5% ​​and value added tax are also being abolished.

 

Analysts say the announcement is expected to reduce the price of small vehicles by between Rs 1.5 lakh and Rs 1.5 lakh, but there are currently only three companies in the country manufacturing up to 850 cc vehicles. ۔

 

That is why it is being said that there is no clear mechanism for fixing the prices of locally manufactured vehicles in Pakistan. A few days ago, some companies have increased the prices of 850 cc vehicles by up to Rs 200,000 and now after announcing tax concessions in the budget, those prices will go back to the same place which does not directly benefit the people.

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