Auto consumers of Pakistan are set to brace yet another price hike impact as the government has just increased the General Sales Tax (GST) on cars with 1400cc (or above) engines from 18% to 25% as part of the “luxury tax” to raise more revenue.
This development comes only days after the government raised the General Sales Tax (GST) from 17% to 18% across the board in response to IMF demands. Now the increased tax will cause a new wave of price increases across the auto industry, which is already struggling from depleting sales due to the weakening economy.
The new 25% GST will be applicable on locally assembled 1400cc vehicles & SUVs and CUVs as well as imported products, including CBU automobiles, electronic items, make-up products, pet food, shoes, imported ladies’ purses, shampoos, soaps, lotions, headphones and speakers, iPod, doors and windows, bath fittings, tiles, sanitary ware, chandeliers, fancy lights and a number of other items.
Impact of 25% GST on 1400cc & Above Cars including SUVs and CUVs
The 1400cc & above locally assembled cars (including SUVs and CUVs) to be impacted by the 25% GST include Toyota Corolla Altis, Yaris Ativ X, Toyota Hilux Revo & Fortuner variants, Honda Civic, City 1.5L & its Aspire variants, BR-V and HR-V, Kia Stonic, Sportage, Sorento, Hyundai Tucson & Elantra, Changan Alsvin & Oshan X7, Proton X70, Haval H6 and BAIC BJ40 Plus, Chery Tiggo 4 Pro & Tiggo 8 Pro, MG HS and Glory 580 Pro.
Impact of 25% GST on CBU-Imported Vehicles
The CBU imported cars that are going to take the GST toll include Toyota Camry, Corolla Cross, Land Cruiser, Prado, Rush, Prius, Honda Accord & CR-V, Kia Carnival, and the Hyundai Staria.
Following this, local auto assemblers which have already made up to 4 price revisions since the beginning of this year are expected to announce yet another price hike soon. Stay tuned to CarSpiritPK for more information.
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