Car Prices After Budget 2024-25: Proposed New Vehicle Tax Rates Announced

Car Prices After Budget 2024-25: Proposed New Vehicle Tax Rates Announced

Car Prices After Budget 2024-25: Proposed New Vehicle Tax Rates Announced
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Finance Minister Muhammad Aurangzeb presented the budget proposal for 2024-25, announcing major revisions to vehicle taxation. A key adjustment involves shifting the basis of the withholding tax (WHT) on cars. Previously determined by engine capacity, it will now be calculated according to the ex-factory price. 3.5

This update affects car prices across various engine capacities, ranging from 660cc to 2,000cc. Let’s dive into how the new budget impacts different car models in Pakistan.

Also read: Who Attacked YouTuber Rahim Pardesi?

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Car Prices After Budget 2024 (660-850cc)

For compact cars like the Suzuki Alto and Bolan, the new withholding tax is set at 0.50% of the ex-factory price. This results in a modest increase in the tax amount for most models. For instance, the Suzuki Alto VX, priced at PKR 2,331,000, will now have a tax of PKR 11,655, up from the previous flat rate of PKR 10,000. The highest increase in this category is seen in the Suzuki Alto VXL AGS, with a new tax of PKR 15,225, an increase of PKR 5,225.

Car Prices After Budget 2024 (851-1000cc)

Moving up to the 851-1000cc category, cars like the Suzuki WagonR and Kia Picanto now have a 1.00% WHT. For example, the Suzuki Wagon R VXR, valued at PKR 3,214,000, will see a new tax of PKR 32,140, a significant rise from the previous PKR 20,000. Similarly, the Changan Karvaan Plus will now have a tax of PKR 29,990 compared to the earlier PKR 20,000, reflecting a notable increase.

Car Prices After Budget 2024 (1001-1300cc)

For mid-sized cars between 1001-1300cc, such as the Suzuki Swift and Honda City, the WHT is set at 1.50% of the ex-factory price. The Suzuki Swift GL Manual, with an ex-factory price of PKR 4,336,000, will now incur a tax of PKR 65,040, up from the previous PKR 25,000. The Honda City 1.2L CVT’s new tax is PKR 70,335, showing a substantial increase from the previous flat rate.

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Car Prices After Budget 2024 (1301-1600cc)

Cars in the 1301-1600cc range, including models like the Toyota Yaris and Honda BRV, will face a 2.00% WHT. The Toyota Yaris GLI MT 1.3, priced at PKR 4,479,000, will now have a tax of PKR 89,580, compared to the previous PKR 50,000. The Honda HR-V VTi, another popular model, will see its tax rise to PKR 152,980 from PKR 50,000, reflecting the increased burden on mid-range vehicles.

Car Prices After Budget 2024 (1601-1800cc)

For vehicles between 1601-1800cc, like the Toyota Corolla Altis and Hyundai Elantra, the WHT jumps to 3%. For example, the Toyota Corolla Altis Grande X CVT-i 1.8, priced at PKR 7,509,000, will see its tax rise to PKR 225,270 from the previous PKR 150,000. The Hyundai Elantra GL will now incur a tax of PKR 191,970, marking a notable increase from the earlier flat rate.

Car Prices After Budget 2024 (1801-2000cc)

For top-tier models in the 1801-2000cc range like the MG HS and Hyundai Tucson, the Withholding Tax (WHT) will be set at 5%. This means the MG HS 2.0T AWD, originally priced at PKR 9,299,000 ex-factory, will now incur a tax of PKR 464,950, a notable increase from the previous PKR 200,000. Similarly, the Kia Sportage AWD will see its tax rise to PKR 423,500 from the earlier fixed rate, indicating a substantial increase for larger vehicles.

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This budget proposal alters the dynamics for car purchasers in Pakistan significantly. Moving to calculate withholding tax (WHT) based on the ex-factory price will result in increased taxes across all vehicle segments, particularly affecting mid to high-range cars. Consumers will have to consider these additional costs when planning their vehicle acquisitions. These adjustments are intended to boost revenue and potentially incentivize a preference for smaller, less expensive vehicles. 3.5

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