The supplementary financial bill, aka mini-budget has been approved from the National Assembly. The amendments will likely result in increase in prices of locally assembled & imported vehicles due to revised duties & taxes imposed on the auto sector.
Federal Excise Duty (FED) on Local Assembled Cars
- 2.5% duty imposed on locally assembled vehicles with engine capacity up to 1300cc. Previously, the FED on 0-1000cc vehicles was 0%.
- 5% FED on 1301-2000cc cars which was previously 2.5% for 1001-2000cc vehicles.
- 10% duty on cars above 2000cc which was previously 5%
Regulatory Duty (RD) on CBUs
- 50% RD on conventional combustion engine vehicles with engine displacements above 850cc. Previously it was just 15%.
- 50% RD on Hybrid Electric Vehicles with engine displacements between 1,500cc to 1,800cc. Previously it was also 15%.
- 27% RD on EVs with battery-packs larger than 50 kWh
General Sales Tax (GST) on Hybrid & EVs
- 8.5% GST imposed on locally assembled hybrid cars up to 1800cc
- 12.75% GST on local assembled hybrids from 1801-2500cc
- 12.5% GST on CBU imported electric vehicles. Previously it was 5%.
With the new taxes & duties now approved from the parliament, one must get ready to witness a substantial increase in prices of local assembled as well as CBU imported vehicles.
A computer animation professional with over 23 years of industry experience having served in leading organizations, TV channels & production facilities in Pakistan. An avid car enthusiast and petrolhead with an affection to deliver quality content to help shape opinions. Formerly written for PakWheels as well as major publications including Dawn. Founder of CarSpiritPK.com
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