25% GST – Locally Assembled 1800cc & Above to be More Expensive – Reports
Federal Board of Revenue (FBR) has identified the luxury items on which 25% General Sales Tax (GST) will be implemented, announced in Finance (Supplementary) Bill 2023. According to media reports, the items include soda water, juices, imported cars, and cat and dog food. We told you about the imported cars in our other blog, discussing that cars with 850cc engines and above will be taxed at 25%.
However, now we know which locally assembled cars will be added to this new tax net. The media reports suggested that 1800cc and above vehicles will now be taxed 25%, which will become more expensive in the coming days.
Luxury tax (25% Sales tax) on Imported goods to be approved today‼️
1800+cc local CKD (Corolla, Fortuner, Sonata etc) also to be taxed at 25%
Civic might be excluded as it is 1500cc pic.twitter.com/bwfWv7PmgB
— Abdul Rehman (@AbdulRehman0292) March 3, 2023
1800cc and Above Locally Assembled Cars
The list of 1800cc and above locally assemblers cars include:
- Toyota Fortuner
- Toyota Hilux Revo
- Kia Sportage
- Kia Sorento
- Hyundai Tucson
- Hyundai Sonata
- Hyundai Elantra (GLS)
- Haval H6 2.0T AWD
- BAIC BJ40 Plus
It is pertinent to mention that all these cars have observed repeated price hikes in the last two months. After the imposition of 25% GST, another huge price jump is inevitable. The reports have suggested that the tax will be approved today, meaning the car companies will announce a hike in the coming days.
A good news for Civic lovers is that the new Honda Civic is 1500cc and will not fall under this new tax. But other car consumers, especially those looking to buy one of the vehicles mentioned above, will surely face a setback because the price jump will be quite noticeable.
Meanwhile, the dollar is still flying relatively high against the Pakistani rupee, so another wave of price increases for all locally assembled cars is expected in the next few days.
What do you think about the 25% GST on 1800cc & above locally assembled cars? Please share your thoughts in the comments section.
