The fiscal budget for 2023–24 has received a lot of attention in Pakistan. It doesn’t matter much for the automobile industry.
The government will proceed with the current strategy under the Automotive Industry Development and Export Policy (AIDEP) 2022–26, according to the specifics. This indicates that new auto taxes won’t change or rise.
No Further Taxes On New Cars
With that in mind, there will likely be some good news and some negative news for car owners. First off, increases in advance income tax, capital value taxes, and customs duties on new autos in Pakistan were anticipated in the budget.
Thankfully, there are no such provisions in the tax form. The good news is that the potential increases in the aforementioned tax rates won’t lead to a rise in car pricing.
Second, the government hasn’t helped the auto industry at all as a result of the prolonged economic crisis. The bad news is that there won’t be any price drops for automobiles in the near future.
The upcoming fiscal year is expected to be difficult for the sector as carmakers fight to survive. Any fresh launches or developments seem improbable in these conditions.
To read our blog on “Hybrid autos offers major tax relief in Budget 2023-24,” click here.
