When the country’s economic graph is under the heavy pressure of meltdown, the incumbent government is embarked on not only increasing but also inflicting new taxes on inflation-stricken masses. After the government increased GST (General Sales Tax), the senate committee approved a one-time ‘radio fee’ of Rs. 500 on new cars.
Chairing a meeting of the senate Standing Committee on Information with two, Senator Fauzia Arshad and Senator Syed Waqar Mehdi, Senator Irfan Siddiqui stated that more than 3 million cars are annually registered, and they all use radio.
He suggested that adding a radio fee of Rs. 500 to registration charges could earn a whopping Rs. 15 billion for Radio Pakistan. The senate committee unanimously okayed the proposal.
25% GST to be Imposed on 1400cc or 1800cc Cars?
There are different news regarding it, firstly the reports are suggesting that the government has included cars with engine capacity of 1800cc and above in luxury items. We did a detailed blog on this proposition and listed the cars and their expected prices after the implementation of 25% GST. As per our calculation, the prices can go up to Rs. 38 lacs; for example, the price of a Toyota Fortuner Legender would be Rs. 19,186,441 from the current Rs. 18,112,000. You can read about the 1800cc and above cars in this blog.
Meanwhile, some media reports suggest that the Federal Board of Revenue (FBR) will include 1400cc and above cars in the list of luxury items. In this case, all the major sedans and SUVs will observe a price hike excluding Suzuki cars. The list would include vehicles like Toyota Yaris, Changan Alsvin (1.5L), Honda Civic, Toyota Corolla and Toyota Yaris (1.5L), and Honda City (1.5L). The new wave of price hikes will affect most locally assembled cars, meaning they would be further away from the reach of the common buyer.
What do you think about the newly imposed radio fee? Share your thoughts in the comments section.
Why on earth are they not trying to increase tax net? Why are roadside businesses still exempted from paying taxes or even utility bills. No wonder that Pakistan’s rank as per World Justice Project is lower than Bangladesh and India.