Sales of Toyota Fortuner down by 70 percent due to taxes

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If Toyota had asked anyone but their employees whether or not to launch the expensive SUV in Pakistan, everyone would’ve said no! Even Indus Motors’ executives in a recent interview said that there exists demand of small vehicles, and no demand for luxury vehicles as people do not have money.

In 2012-13, the sale of Fortuner stood at 850 units (211 units per month) but during the first five months of fiscal year of 2013-14, the sales have plunged by 70 percent owing to taxes. Auto Analysts have said that massive drop in sales happened when government increased GST (General Sales Tax) and imposed 10 percent FED (Federal Excise Duty).

Indus Motors had spend two billion rupees over a period of time to assemble and sell Fortuner in Pakistan. The SUV was introduced at a price of 5.17 million rupees which has now jumped to 5.7 million, and the price already include 2.3 million rupees in taxes.

Officials of Indus Motors concur with the auto analysts and demand that the government remove the 10% FED from the SUV as the sale of Fortuner which was in launched in March 2013 dropped to just 25 units in November of that year.

The imposition of FED has not only affected luxury car maker but Millat Tractors as well who had shut down production for two weeks, beginning from January 20, 2014.

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7 Comments
  1. Muhammad Ali says

    If they're assembling it in Pakistan – why they're paying 2.3million in tax? | they should rather use the smaller yet efficient engine and get reduction on taxes. – Fortuner is best prices at 4Million. ~

  2. Asim Chaudhry says

    Keeping in view the current energy crises in Pakistan, Govt should further increase taxes and duties on SUVs and other large cars and lower the taxes on small cars.

  3. Shakil Sadiq says

    Hats off to the Think Tank at Indus Motors.. These Rocket Scientists, know as much about regional Car Sales and Model Selection as Pakistani politicians know about Governance !!! What part of stagnant Economy, do you Duffers not understand?? Do they have any idea of Wallet Sizing for the Prospective Buyers ?? To Sell Autos … One MUST live Autos !!! and once they get tired of pinning the Tail on the Ass.. they come out blaring at auto Imports .. and the Pakistani Populas continues to Suffer.

  4. Shaza Haq says

    Allah maafi. Itna ghussa.

  5. Qasim Saidhi says

    Spot On

  6. Rabeel Ch says

    crazy tax of 2.3 mill wow that's called Ishaq Dollars rule

  7. Jonaid Malik says

    That's right tax cars and fuel and build a public transport system as well as good railway network through the country. Reduce dependence on cars, promote Live-Work-Play community concept. Reduce dependence on foreign oil. If anything, learn how to make 100% Electric Vehicles but before that have Electricity Available.

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