Mini Budget: Revised Taxes & Duties Imposed

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.

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