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BUDGET 2022-23: Govt hs imposed a new tax on all cars worth more than Rs. 5 million

BUDGET 2022-23: Govt hs imposed a new tax on all cars worth more than Rs. 5 million

Government is stepping up efforts to limit the sale and purchase of “luxury” automobiles. The government has also imposed new taxes on cars with high price tags, in addition to a 100 percent rise in advance tax for non-filers on the purchase of cars over 1,600cc.

According to the budget paper, car buyers will pay a capital value tax of 2% of the car’s worth. This charge is only applicable to automobiles that cost more than Rs. 5 million. The government has thus been able to bring cars with modest turbocharged engines but high sticker prices into the tax net.

Changan Oshan X7, Peugeot 2008, Honda Civic, DFSK Glory 580 Pro, Proton X70, Haval Jolion, and H6 are among the popular cars affected by this tax. In recent months, Pakistan has seen an increase in demand for crossover SUVs. However, some of these additional levies are expected to have a detrimental influence on their sales.

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The government’s rationale for these taxes is to force individuals to buy only what they need in order to protect the economy; however, only time will tell if this strategy is effective.

RELATED: Budget 2022-23: Govt raises Tax on New Cars Over 1600cc by 100%

Read more on Latest Business News on Pakistanlounge.pk

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Sibtain Ali is a Senior Editor Business at Pakistan Lounge and joined in October 2021. Formerly business editor at a renowned International News website

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