Alert: Massive Price Increase Ahead

Locally assembled cars in Pakistan are set to witness a massive price increase in the wake of the latest tax amendments made by the government. The latest Statutory Regulatory Order (SRO) amendment was made to the S.R.O. 297(I),2023 with a new S.R.O 370(I)/2024 dated 8th March 2024 which sees the GST (General Sales Tax) being raised from 17% to 25%.

According to the notification:

  • A 25% sales tax is applicable on locally manufactured or assembled vehicles having engine capacity of 1400cc and above.
  • A 25% sales tax on locally manufactured or assembled vehicles if the invoice price exceeds Rs. 4 million.
  • A 25% sales tax on locally manufactured or assembled double cabin (4×4) pick-up vehicles.

Bear in mind the FBR recently opposed implementing the tax hike on vehicles below 1400cc engine capacities or the Rs 4.0 million & below price mark citing the risk of revenue decline.


With this, while the likes of Suzuki Alto, Wagon R, Kia Picanto, and selected variants of Proton Saga and Suzuki Cultus will remain unaffected, the price of Suzuki Cultus VXL & AGS, Proton Saga Ace, Toyota Yaris 1.3L variants, and Honda City 1.2L variants will get a price hike despite having a lower displacement engine only because of their prices exceeding Rs 4.0 million. Prices of double cabin 4x4s are also set to witness a massive price increase.

Related: PAMA Calls for Reversal of 25% Sales Tax Hike

Local assemblers have reportedly suspended new bookings of these aforementioned models with immediate effect, and a price increase announcement is expected to be made shortly. Stay tuned to CarSpiritPK for the updated prices of these cars.

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