Auto lovers to pay higher tax as Finance Bill 2024 takes effect
Business
The automobile industry, like all other industries couldn't resist the imposition of higher taxes
ISLAMABAD (Dunya News)- After outright rejection by the opposition and the Pakistan Peoples Party's displeasure over not consulting it in the budget making, the Finance Bill 2024 stands applicable from the dawn of new fiscal year and onwards.
The automobile industry, like all other industries couldn't resist the imposition of higher taxes. Taking a leaf out of the new Finance Bill 2024, tax on locally assembled cars has also been increased. Earlier it was charged as fixed tax but now people will have to pay the tax on locally assembled cars according to raised percentage.
Tax on an 850CC car has been increased from a fixed amount of Rs10,000 to 0.05pc. Similarly, tax on cars ranging between 851CC to 1000CC will be 1pc instead of fixed Rs20,000 in the last fiscal year.
Fixed tax on a 1300CC car has been replaced with 1.5pc and on a 1600CC car with 2pc instead of Rs50,000. People willing to purchase cars between 1601CC to 1800CC will have to pay 3pc tax unlike last year when it was fixed at Rs150,000 and for cars between 1801CC to 2000CC it will be 5pc.
Besides, tax on luxurious cars above 3000CC has been jacked up by 2pc, taking it to 12pc.
