The federal government is going to present Fiscal Budget 2023-24 today in the national assembly, and earlier, we gave you a recap of the previous year and discussed the taxes and duties imposed by the government last year. Meanwhile, earlier reports suggested that there could be no new tax on the already shambled industry. The experts mentioned that the government is planning to impose Advance Tax on non-filers, and you can read about it here.
Expected Car Tax in Budget 2023-24
Contrary to early hints, media reports are talking about some expected taxes and duties on cars and the auto sector. As per a news channel, the government will propose the following:
- Increase tax rate on luxury cars
- Tax as per price range on locally assembled cars
However, the name and nature of these taxes are unclear as the picture would be clear after Finance Minister Ishaq Dar’s budget speech today.
CVT on 1,000 cars
Some market sources have claimed that the government will propose implementing a Capital Value Tax (CVT) on 1,000cc cars and above. It is pertinent to mention that there is a 1% CVT on cars above 1,300cc and above. In the last Fiscal Budget, the government earlier proposed 2% CVT on cars with a price over Rs. 5 million. However, FBR revised it to 1% but imposed it on 1,300cc and above cars. Moreover, the tax was also applied to electric vehicles (EVs) with batteries over 50Kwh.
If the rumors are true and the sources are correct, we should be ready for another wave of car price hikes because companies would not have any other choice. It is pertinent to mention that all car assemblers have already announced repeated rate jumps in 2023, taking them out of reach of a common person.
So, keep your fingers crossed and hope for the best.
What do you think about new expected car taxes in budget 2023-24? Please tell us in the comments section.
