Overview
The unstable rate of the Dollar directly affects trade and imports. In Pakistan automobile industry import automotive parts and pay the customs duty according to the dollar currency. Pakistan’s government has taken the multiple-step to control the trade deficit in Pakistan. To promote the culture of locally manufactured vehicles they banned the import of used cars and made strict rules for used car import. Earlier they had introduced the new Auto Policy (2021-2026), in which they had decreased the taxes on all locally manufacture cars. However, all the reliefs by the government cannot control the contentiously increasing dollar strength that is directly affected to the vehicle manufacture cost. Still, there are high chances of 1500cc cars prices to be increased very soon in Pakistan.
Also Checkout: MG HS Plug-In Hybrid Booking Has Start!
Car Prices Increase Proposal
To increase the car prices according to the high cost the Ministry of Industries and Production has sent the proposal to the government, which they mention to allow increase car prices above 1500cc. Previously, the government has rejected the price hike and warn to automakers to not increase prices. The Ministry has given the proposal to the government, to increase the Federal Excise Duty (FED) from 5% to 10%. In the new Auto Policy (2021-2026) government provides relief in FED on all cars. If the government has approved the request cars above 1500cc will get a price increase. Here are the points that Ministry mention in the Proposal:
- Regulatory Duty to be imposed on the Electric Vehicle above 50KWH Battery. The purpose behind this is the import of CBU EVs. Under the new Auto Policy, Custom Duty was decreased from 25% to 10%.
- The Regulatory Duty on Hybrid Vehicles (CBU) 1501cc to 1800cc car to be increased from 15% to 50%. this increase in the RD will discourage the CBU units import.
- RD on CBU import of gasoline vehicles should also increase from 15% to 50%.
Also Checkout: This Time Haval Jolion Gets Huge Price Hike
Conclusion
The Ministry has mentioned the above points in the proposal with above mention points to control the trade deficit. However, there is no acceptance has clear by the government officials. Until the government approval, the Ministry of Industries can take any action. But there are high chances government will accept the proposal and the price will increase very soon.
