The new auto tariff policy in Pakistan could bring lower car prices for buyers, according to the reports on Sunday. This is especially for the 800cc to 1500cc category, if it is implemented in the future.
The proposed plan includes changes to the current tax system to make vehicles more affordable in different engine categories, as per the reports.
Will petrol, diesel vehicles get more expensive
Reports say that the federal cabinet has approved a broader tariff structure, but the new measures have not been implemented yet.
According to the details, the overall duty on cars could be reduced from around 156 per cent to nearly 74 per cent.
For vehicles up to 800cc the current tax burden of about 50 per cent is proposed to be reduced to around 30 per cent. These include entry level models such as Alto type cars.
Reports say that this category is important for first time buyers and people looking for affordable vehicles.
In the 1000cc category, the existing duty of around 60 per cent could be lowered to 40 per cent. This includes several popular models from Toyota and Honda. This may help reduce the prices of many compact cars between 1200cc and 1500cc.
For vehicles between 1500cc and 1800cc, including several mid-sized models, the current duty of around 55 per cent is proposed to be reduced to 45 per cent.
Luxury vehicles and SUVs above 1800cc currently face duties of up to 100 per cent. Under the proposed policy, these could be reduced to around 50 per cent.
Reports say that the plan also includes changes to taxes on auto parts. Locally made components currently face taxes between 15 per cent and 35 per cent.
The proposal suggests bringing these rates to around 25 per cent to 30 per cent to support local manufacturing and improve competition.
Officials say that if the new tariff structure is implemented, car prices in different categories could become lower. However, the timeline for putting the policy into effect has not been confirmed.
