Overview:
Yesterday the Federal Government has imposed a 25% GST (General Sales Tax) on luxury items. FBR the (Federal Board of Revenue) issued a new sales tax notification under the SRO 297(1)/2023 confirming this new tax today. Some of the vehicles which were not 1400cc cars are also facing the tax application. This tax slab has included all locally assembled 1400cc and above 1400cc cars.
The important thing to notice there is these are locally manufactured or assembled SUVs and CUVs. A car even with engine displacement lower than 1400cc was included in this (GST) which is why we were expecting a new price hike. As expected it happened today as the Company KIA increase their car prices.
KIA lucky motors state that due to an increase in the Sales Tax rate from 18% is now increased to 25%, the ex-factory prices effective from March 8, 2023, have been revised.
New Prices of KIA Cars:
KIA Automotive assembler has increased the prices of its SUVs and CUVs, which are Stonic, Sportage, and Sorento.
The revised prices of the vehicles are as follows:
KIA Sportage’s new Price after 25% (GST):
The price of Sportage Alpha was Rs. 6,650,000 a couple of weeks ago, but after an increase of Rs. 400,000 now the SUV costs Rs. 7,050,000.
The price of the KIA Sportage FWD was raised by RS. 440,000 and now the vehicle costs Rs. 7,790,000 compared to the old price of Rs. 7,350,000.
Similarly, the price of Sportage AWD is increased to Rs. 7,900,000. But now the vehicle has been further increased to Rs. 8,370,000 after observing a jump of Rs. 470,000 PKR.
Sorento Updated Price:
The New Sorento 2.4L FWD used to cost Rs. 9,000,000 but after the hike in price due to a 25% GST increase in (GST) the vehicle cost Rs. 9,540,000.
The price of Sorento 2.4L AWD was 9,800,000 a few days ago. Now the vehicle cost 10,390,000. With a difference of a whopping Rs. 590,000.
Lastly, The Sorento 3.5L FWD is now being priced at Rs. 10,390,000 instead of Rs. 9,800,000 like the Sorento 2.4L AWD.
Kia Stonic New Price:
The KIA Stonic EX now costs Rs. 5,200,000 instead of Rs. 4,900,000 because the price has been increased by Rs. 300,000.
Whereas, KIA Stonic EX+ now comes with a new price of 5,730,000 rupees as opposed to the previous cost of 5,400,000 rupees.
In the coming days, we will see more price increases by the local car companies. So, be prepared.
