As per Mini Budget announced by the Finance Minister Mr. Asad Umar, one of the proposed amendment is that Federal Excise Duty (FED) on cars with engine capacity of 1800cc & above will be increased from 10% to 20%.
News has been circulating in Electronic (TV news channels), Internet (Pakwheels & news websites) and Print Media (newspapers) that FED on all cars (of engine capacity 1800cc & above ) have been enhanced from 10% to 20%. This news and perception of being applicable on all cars (local & imported) is not correct.
FED of 10% on vehicles is levied under Sr. No.55, Table 1, First Schedule of Federal Excise Act, which is applicable for IMPORTED VEHICLES ONLY. The rate has been enhanced from 10% to 20%; thereby, the locally manufactured cars do not fall under this ambit. However, automobile companies (Toyota, Honda, Suzuki etc) importing CBUs e.g Camry, Land Cruiser etc and selling them at showroom will be affected by increase of FED on cars of 1800cc & above.
Mini Budget highlights/commentaries of reputed firms have also stated that the increase in FED is applicable on Imported Cars.
In the end, the law shall prevail.
Furthermore, Grande/Civic are under 1800cc in the books