These are the new tax increases which will raise the prices of local cars

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Fancy buying a local new car? Well, the government is pleased to announce complete support towards your new car dream by jacking up sales tax, withholding tax, and federal excise duty on local cars.

Although the increase is rather small and weak Japanese Yen may support automaker’s profitability however, automakers always pass on such increases to buyers.

The government has raised general sales tax by one percent for registered cars and three percent for unregistered car buyers while federal excise duty is raised by 100 percent on cars with engines larger then 1800cc.

In the budget, the government has also raised WHT (withholding tax) on 1000cc cars from 10,500 rupees to 20,000, on 1300cc cars from 16,875 rupees to 30,000 rupees and on 1800cc cars it has been raised from 22,500 to 75,000 rupees.

Moreover, the FED (Federal excise duty) on cars above 1800cc/SUV has been increased from five to 10 percent.

It is expected that prices of 800-1800cc cars will go up by two percent for registered and individual buyers and by four percent for non-registered car buyers.

Analysts however said that there won’t be much impact of this increase on demand as the price increase will be too small to notice.

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  1. Henry Ford says


  2. Aneef Izhar Ul Haq says

    Honda Civic mazeed mehngi hojaye gi BC.

  3. Hamza Abbas says

    have applied for it….n will have to pay 75,000 extra as it is arriving on this Friday but the invoice will come after 1st July 🙁

  4. Zeeshan Malik says

    hi every body this is not a big deal they are stupid and they are always planing wrong In the government politest people. my sorry about they have to go back to collage have a real degree so they can make the planing if I say the batter about the car tax make the law about every one to buy the car and they have to transfer on there name with new number and every year renewal registration card the government should know about USA system their is no problem car buy from Karachi to Islamabad transfer. they go automatically to change the number government have tax every time to change the transfer and every year to renewal the registration this system in USA. If they cant find out why they have pakistani ambassador in united states. I advised don't kill your own public in advanced tax and do kill the public yearly and transferly. PAKISTAN ZINDABAD mean the people like you Swiss generation leave the Pakistan zinda Thanks this my right to tell you. And Thanks Again……….

  5. Maliha Andaleeb says

    Contact 03137567897 if ny1 wants a brand new oriel prosmatic 2013 June.Black.unregistered.

  6. Raja Talha says

    is it with leather seats and multi media display? What's the demand?

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