Overview
Consecutive the Budget 2023-24 the automotive industry could possibly be made changes in car prices. Following the new budget, Asians Make old and used car prices increase. The impact could be possibly a burden on 1300cc and above Asian Make old and used cars. The new budget policy indicates the shift of customs duty to these cars, where the MSRP (original price in the car’s original country) will now vary in accordance to the trim or variant of the vehicle. The adjustment might imply customers to expect face higher car prices for different models, following the customs duty on each variant.
Previous Policy
The customs duty terms have been worked uniformly for all these cars up to 1800cc. You can say this has done traditional work for all different models.
Meanwhile, the Budget for 2023-24 has introduced a significant escape. The new policy categorized the vehicle’s duty according to the value, trim, or variant. This will not only impact higher car prices but could possibly reduce some models’ prices. Standard variant or trim could be cheap under the new policy.
The aim of this change is to create a more significant approach to taxation and organized a good structure system.
Affects On Car Prices
The new policy will made some good and sad consequences. The advanced variants with modern features will be more expensive for consumers and might get out of the range of buying. But the standard cars come with standard features and specifications and could possibly be cheap to buy under the policy.
The new policy might change the perspective of different buyers. But the essential structure to stabilize the system behind this step is necessary to understand. The government aimed to manage a proper tax system according to the real value of the vehicle. It will help to align the luxurious cars and standard models in different lines and make balance.
This would also ensure the fair taxation of vehicles according to modern features. Not all buyers will consider in the same terms. But those who select the standard variant or trim will pay according to their purchase. However, the thing will clear in the coming days once the government announced a statement regarding this.
Experts believe the government might increase Customs Duty Rate by 7%. These cars will be considered to be more expensive in the coming days after the officials announced a statement of new taxes to be imposed.
Conclusion
The local automotive industry could witness higher demand as the prices of imported cars would be expensive. The local car maker will temporarily earn benefits until the customers will use it and agree with the new high prices. Particularly, in a few days, consumers’ minds adjust to the new terms and they shift to the needed cars however the price is higher.
