The government today has announced the second mini-budget for fiscal year 2019. Finance Minister Asad Umar presented the new finance bill for the ongoing fiscal year in the National Assembly.
In terms of reforms related to the automobile sector, the government has allowed non-filers to purchase new cars up to 1300cc engine capacity. However the Finance Minister said the government is going to increasing the tax ratio for non-filers who purchase new vehicles.
Additionally, in the previous amendment, a 20% federal excise duty was imposed on imported cars and SUVs of engine capacity exceeding 1800cc. Now in order to further discourage the import of luxury cars and 4x4s, it is proposed to enhance the rate of excise duty from 20% to 25%, for SUVs/ 4x4s up to 3000cc and to 30% for cars exceeding 3000cc.
Furthermore, it is also being proposed to levy excise duty on locally assembled cars and SUVs by up to 10% with engine capacity exceeding 1800cc. Further details will be updated as and when available.
A 3d animation professional with over 20 years of industry experience having served in leading organizations & production facilities of Pakistan, an avid car enthusiast and petrolhead with an affection to deliver writings to help shape opinions. Formerly written for PakWheels as well as major publications including Dawn. Founder of CarSpiritPK.com