New car prices increase 200% by advance tax in budget 2022-23

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New car prices increase 200% by advance tax in budget 2022-23

Non-filers are subject to a 200 percent tax increase on cars with engines displacements exceeding 1600cc.

This decision will likely impact the demand for many cars in Pakistan. This is how much customers will need to pay in advance for locally manufactured ‘luxury vehicles’.

ModelsEngine Displacement (Cubic Capacity)Price (Rs.)Previous Advance Tax for Non-Filers (Rs.)New Advance Tax for Non-Filers (Rs.)
Toyota Corolla Altis Grande<1800cc4,499,000-4,859,000150,000300,000
Hyundai Elantra GLS<2000c4,949,000200,000400,000
Hyundai Tucson<2000cc5,799,000-6,299,000200,000400,000
Hyundai Sonata 2.0<2000cc6,999,000200,000400,000
DFSK Glory 1.8 CVT<1800cc5,159,000150,000300,000
Kia Sportage<2000cc5,300,000-6,300,000200,000400,000
BAIC BJ40>2000cc8,199,000200,000400,000
Hyundai Sonata 2.5<2500cc7,849,000300,000600,000
Kia Sorento<2400cc6,836,000-7,499,000300,000600,000
Toyota Fortuner2700-2800cc9,959,000-12,679,000400,000800,000
Toyota Hilux<2800cc7,359,000-9,729,000400,000800,000
Isuzu D-Max V-Cross3000cc6,600,000-6,960,000400,000800,000
Kia Sorento V6<3500cc7,499,000450,000900,000

This tax will not directly affect the prices of these cars, but it will raise the overall cost of purchasing them. It will also help the government collect more taxes from those with higher purchasing power, and allow them to join the tax net.

The government wants to maintain the current progress of the auto industry and encourage the industry to fully indigenize production of cars and parts.

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