Lucky Motor Corporation Limited (LMCL) has issued a press release clarifying price hike rumours circulating in the media. According to the official statement, the company made no changes to the ex-factory prices of its vehicles.

However, following the enactment of a 1 percent capital value tax (CVT) on cars with engines larger than 1300cc, the purchasing cost of all cars has risen slightly, with the exception of the Kia Picanto.

New Kia Car Prices in Pakistan

Effective July 1, 2022, the federal government will impose a 1% CVT on cars with engines larger than 1300cc and electric vehicles (EVs) with battery packs larger than 50 kWh.

It had initially proposed a 2% CVT on vehicles costing more than Rs. 5 million. Its goal was to levy taxes on high-end vehicles equipped with turbocharged engines, such as the Proton X70, MG HS, Haval Jolion, and H6.

According to various reports, the FBR reduced the CVT from 2% to 1% to benefit the public. However, the market notion is the new tax will make matters worse for mid-range and economy-car buyers.