Price of These Cars to Be Increased After New Tax

• Omar Faruq


• 27 Jun 2023

After the incumbent has passed the Finance Bill 2023, the tax on the vehicles with engine capacities above 2000cc has been increased. The recent development will result in a fresh price hike of high-end cars.

Here is the list of the vehicles which will bear the effect of new tax amendment.

• KIA Sorento
• Toyota Hilux Revo
• Toyota Fortuner
• Hyundai Porter
• Toyota Camry
• Toyota Hilux
• Hyundai Santa Fe
• Toyota Land Cruiser Prado
• Toyota Coaster
• Hyundai Staria
• KIA Grand Carnival
• Isuzu D-Max
• Hyundai Sonata (2.5)

Great news for individuals contemplating buying a BJ40 plus, KIA Sportage or Hyundai Tucson! These SUVs have narrowly avoided the consequences of the recent tax hike due to their engine capacity of 1999cc. The slight 2cc variance has effectively spared them from being subjected to this newly implemented taxation.

Finance Act 2023

As per the revised bill, following will be the tax rates implemented for different vehicle engine capacities.

• 6% tax will be imposed on the value of vehicles with engine capacities from 2001cc to 2500cc.
• Vehicles with engine capacities from 2501cc to 3000cc will face an 8% tax based on their value.
• cars powered with engine exceeding 3000cc will be subject to a 10% tax based on their value.

Under the amended Finance Bill 2023, the Customs department will evaluate the import value of cars with engine capacities exceeding 2001cc. This import value will be used to determine the applicable Customs Duty, Federal Excise Duty (FED), and Sales tax.

For both Completely Built-up (CBU) and locally assembled cars with engine capacities above 2001cc, the invoice value, which includes all duties and taxes, will be taken into consideration.

In situations where the engine capacity is not relevant, and the value of vehicles is Rs. 5 million or higher, a tax rate of 3% will be imposed on the import value (including the revised Customs Duty, FED, and Sales tax for imported vehicles) or the invoice value (for locally assembled vehicles).