Overview
The announcement of two new slabs of General Sales Tax brings a new wave of price hikes. Earlier, the GST increased from 17% to 18% and now the government has considered a 25% GST increase for 1400cc and above cars. Meanwhile, FBR has not issued a notification, but the coming one or two days will confirm the FBR decision.
It’s pertinent to mention that not only cars will receive a new 25% GST but the officials have considered all luxury items for new tax and cars are part of it. Previously, it was not confirmed that government will consider CKD cars or CBU units only. But FBR has confirmed the CKD units are included. Prepared yourself for another wrecking ball.
According to the details, the Federal Board of Revenue (FBR) estimated that the new tax implementation will help the government to collect more than Rs. 15 billion.
Estimated Price after 25% GST on 1400cc Cars
The prices will take a long jump this time. Sedans will no longer be economical cars for customers. The affection of the new GST led to another storm for 1400cc and above cars.
Toyota
First, we will talk about Toyota because all models are affected by the new 25% GST implementation. The hardest attack is on Fortuner as the price will jump by Rs. 30 lacs. Following are the estimated price of Toyota cars after 25% GST.
| Cars | Current Price with 18% GST | Estimated Prices with 25% GST |
| Corolla Altis Grande X CVT 1.8 Beige Interior | Rs6,998,000 | Rs7,413,136 |
| Corolla Altis Grande X CVT 1.8 Black Interior | Rs7,039,000 | Rs7,456,568 |
| Corolla Altis X CVT-i 1.8 | Rs6,423,000 | Rs6,804,025 |
| Corolla Altis X S.E 1.6 | Rs6,716,000 | Rs7,114,407 |
| Corolla Altis X 1.6 CVT-i | Rs6,111,000 | Rs6,473,517 |
| Corolla Altis X Manual 1.6 | Rs5,576,000 | Rs5,906,780 |
| Fortuner 2.7 G | Rs14,230,000 | Rs15,074,153 |
| Fortuner 2.7 V | Rs16,297,000 | Rs17,263,771 |
| Fortuner 2.8 Sigma 4 | Rs17,175,000 | Rs18,193,856 |
| Fortuner Legender Diesel | Rs18,112,000 | Rs19,186,441 |
| Yaris ATIV X CVT 1.5 | Rs5,213,000 | Rs5,522,246 |
| REVO G Auto 2.8 | Rs11,728,000 | Rs12,423,729 |
| REVO V Auto 2.8 | Rs12,969,000 | Rs13,738,347 |
| REVO G 2.8 M/T | Rs11,184,000 | Rs11,847,458 |
| Hilux E | Rs10,316,000 | Rs10,927,966 |
| Revo V Rocco | Rs13,675,000 | Rs14,486,229 |
Honda
Atlas Honda Civic RS Turbo is very close to 10 million after the new wave of Tax. Honda Civic and City are the two most favorite cars in Pakistan and both will now be out of the current range of price. Honda follows the new tax accordingly and the price will be:
| Cars | Current Price with 18% GST | Estimated Prices with 25% GST |
| City 1.5L Aspire CVT | Rs5,419,000 | Rs5,740,466 |
| City 1.5L Aspire MT | Rs5,229,000 | Rs5,539,195 |
| City 1.5L CVT | Rs5,019,000 | Rs5,316,737 |
| HR-V VTi | Rs7,199,000 | Rs7,626,059 |
| HR-V VTi-S | Rs7,399,000 | Rs7,837,924 |
| BRV i-VTEC S A/T | Rs5,949,000 | Rs6,301,907 |
| Civic 1.5 Turbo Oriel | Rs8,099,000 | Rs8,579,449 |
| Civic 1.5 Turbo RS | Rs9,199,000 | Rs9,744,703 |
| Civic 1.5 Turbo Standard | Rs7,779,000 | Rs8,240,466 |
New Prices of Changan Cars
Changan Alsvin was hoping for an economical price car for customers. But taxes dropped the position of Alsvin in the market and make its purchase hard for customers. The new implementation of 25 percent GST brings it to Rs. 4,871,822. Here are the estimated prices:
| Cars | Current Price with 18% GST | Estimated Prices with 25% GST |
| Oshan X7 Future Sense | 8,679,000 | Rs9,193,856 |
| Oshan X7 Comfort | 8,069,000 | Rs8,547,669 |
| Alsvin 1.5L DCT Lumiere | 4,599,000 | Rs4,871,822 |
| Alsvin 1.5L DCT Comfort | 4,239,000 | Rs4,490,466 |
Hyundai
Hyundai Nishat Motors Limited offers luxury-style cars for Pakistan. Sedans and SUV prices will up according to the 25% tax and will reach to:
| Cars | Current Price with 18% GST | Estimated Prices with 25% GST |
| Elantra GL | Rs5849000 | Rs6,195,975 |
| Elantra GLS | Rs6,349,000 | Rs6,725,636 |
| Sonata A/T 2.0 | Rs9,129,000 | Rs9,670,551 |
| Sonata A/T 2.5 | Rs9,939,000 | Rs10,528,602 |
| Tucson AWD A/T Ultimate | Rs7569000 | Rs8,018,008 |
| Tucson FWD A/T GLS Sport | Rs8169000 | Rs8,653,602 |
Proton New Prices
Two models of Proton are affected by the FBR’s new tax implementation. Proton X70 Executive and Proton X70 Premium are affected and will be offered for:
| Cars | Current Price with 18% GST | Estimated Prices with 25% GST |
| X70 Executive | Rs6740000 | Rs7,139,831 |
| X70 Premium | Rs7190000 | Rs7,616,525 |
KIA Car Prices After 25% GST
Kia Sportage all variants and Sorento are considered in the new wave of price hikes. Because both are above 1400cc engine displacement.
| Cars | Current Price with 18% GST | Estimated Prices with 25% GST |
| Sportage Alpha | 6,556,000 | Rs6,944,915 |
| Sportage AWD | 7,716,000 | Rs8,173,729 |
| Sportage FWD | 7,111,000 | Rs7,532,839 |
| Sorento 2.4 AWD | 9,800,000 | Rs10,381,356 |
| Sorento 3.5 FWD | 9,800,000 | Rs10,381,356 |
| Sorento 2.4 FWD | 9,000,000 | Rs9,533,898 |
Haval and Baic
Haval and BAIC prices will increase according to:
| Cars | Current Price with 18% GST | Estimated Prices with 25% GST |
| BJ40 Plus | Rs10585000 | Rs11,212,924 |
| H6 PHEV | Rs11095000 | Rs11,753,178 |
| H6 2.0T AWD | Rs9749000 | Rs10,327,331 |
| H6 1.5 | Rs8525000 |
MG New Price
MG has only one car on the list of new price hikes. The current MG Essence with 18% GST is available for Rs. 8,199,000 and after 25% tax, it will reach Rs. 8,695,381.
Chery Tiggo 8 Pro and 4 Pro New Price
Chery has two models on the list to consider for the new price increase.
| Cars | Current Price with 18% GST | Estimated Prices with 25% GST |
| Tiggo 8 Pro 1.6 DEX Plus | Rs9299000 | Rs9,850,636 |
| Tiggo 4 Pro DEX Plus 1.5T | Rs6099000 | Rs6,460,805 |
DFSK Price
DFSK Glory 580 Pro price will reach Rs. 6,885,593 with 25 percent GST against the price Rs. 6,500,000 at 18% GST.
Conclusion
Tax collection is part of the government’s plan to collect more money and make it useful to the economic plans. The officials have only considered 1400cc and above cars for tax increase. It’s mean below 1400cc cars still able to find in budget. The government has faced tough challenges. The only way to increase government income is by rising the ratio of taxes. The other side of the current situation is the government has controlled the expenses and trade of the dollar.
