Federal excise duty increased to 20% on 1800cc and above cars

FED on 1800cc

The Federal government has announced the amendments in the existing budget 2018-19, during the session at the National Assembly on Tuesday, 18th September 2018.

At the session, PM Imran Khan along with other ministers and lawmakers was present.

Among many other amendments presented in the budget, the Federal Excise duty on 1800cc cars and above has been increased to 20% from 10%.

Moreover, from Completely Built Units (CBU) to imported and locally manufactured, this increased percentage will be applied to every car. According to one of the analysts – Arghan, the increased FED will highly impact the cars by making them even pricier.

However, the FED for all commercial vehicles and vans remains unchanged; which is zero.


Other than this, the ban on non-filers to purchase the cars has been uplifted, and now regardless of the engine capacity of the car, the non-filers can easily buy them. This amendment will bring the positive impact on the car sales, as previously, the sales have been showing a downward trend since the non-filers were restricted to by cars.

Read More: FBR bans income tax non-filers from buying cars

Furthermore, the government announced to withdraw the decision of increasing Petroleum Development Levy on petroleum products, which was imposed by the previous government. But, in the case of an increase in the exchange rate, the petrol prices will go up by 20 rupees.

Budget PW

Describing the country’s economic situations, the Finance Minister Asad Umar stated that the budget deficit has gone up to 6.6% from 4.1% during the last government’s tenure.

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Notable Replies

  1. There couldn't have been a more balanced mini budget.

    Govt. has really taken some very good steps to strengthen the economy.

    We should support and stand by our govt. to eliminate this menace of corruption for once and for all.

  2. aa78 says:

    Non-filers should not be allowed to purchase any vehicles. Documentation of economy must be encouraged.

  3. dakoon says:

    Yes yes and yes

  4. The GoP has announced its mini budget today, rationalizing the earlier announced FY19 budget by PML-N. While balanced on focus items, outcome remains a question mark, particularly with respect to utilization of technology to increase revenue. Key steps announced in the budget include:
    · Revenue measures to raise an additional PkR183bn revenue with PkR92bn from administrative measures while rest would be primarily earned through RD on imports.
    · PSDP allocation of PkR725bn (down 9% from Budget’19 allocation)
    · Withdrawal of duty RD on inputs for export oriented industries.
    · Removal of restriction on non-filers on purchase of cars and property
    · Petroleum development levy collection reverted to PkR200bn from previously budgeted PkR300bn.
    · PkR6-7bn subsidy on urea (production as well as imports)
    · Rate of WHT on non-filers for banking transactions has been once again reinstated at 0.6% (previously 0.4%).
    · Insurance cover of PkR540k per family via Sehat Insaf Card to people in FATA and Islamabad territories.
    · Release of PkR4.5bn for the completion of housing schemes for underprivileged.
    · Minimum pension increased by 10% for EOBI pensioners.
    · Increased tax on cigarettes, import of luxury items and cell phones.
    · Duty doubled on import of +1800cc cars
    · Salary tax rates maintained on salary of PkR200k/month or below
    The budget speech should result in a relief rally at the PSX where market had been weighed down by broader expectation of a difficult budget announcement. That said, beyond the immediate rally, we see imminent macro pressures particularly fiscal funding and its repercussions to restrict upside.

  5. what i get is IMPORTED one. not local assemblers.

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