Pakistan’s New Auto Policy: Petrol Cars Could Become Cheaper
KARACHI; Prime Minister Shehbaz Sharif has directed authorities to reduce vehicle prices under Pakistan’s new auto policy, with proposed cuts in Federal Excise Duty (FED) and customs duty expected to make locally manufactured petrol cars more affordable.
According to the documents, the proposed reduction in taxes could lower the prices of locally assembled petrol vehicles by up to Rs1 million, depending on engine capacity and vehicle category.
The move follows Prime Minister Shehbaz Sharif’s instructions to make vehicles more affordable under the new automobile policy.
Small Petrol Cars to Become Cheaper
According to the documents, locally manufactured petrol cars with engine capacities of up to 658cc could become cheaper by Rs375,000. The price of these vehicles is expected to decrease from Rs3.22 million to Rs2.845 million.
Similarly, locally manufactured petrol cars with engine capacities of up to 998cc could see a price reduction of Rs440,000. Their prices are expected to fall from Rs4.27 million to Rs3.83 million.
Petrol SUVs to See Major Price Cuts
The proposed auto policy also includes significant price reductions for locally manufactured petrol SUVs.
Petrol SUVs with engine capacities of up to 1,496cc could become cheaper by Rs740,000. Their prices are expected to decline from Rs6.06 million to Rs5.32 million.
Meanwhile, locally manufactured petrol SUVs with engine capacities of up to 1,498cc could see a reduction of Rs280,000. Their prices are expected to decrease from Rs9.44 million to Rs9.16 million.
Petrol Jeep Prices Also Expected to Decline
The documents also mention a proposed price reduction for locally manufactured petrol jeeps with engine capacities of up to 1,598cc.
However, the stated figures contain inconsistencies. The documents reportedly mention a reduction of Rs10, while the price is shown falling from Rs12.1 million to Rs11.1 million, indicating a reduction of Rs1 million.
This discrepancy requires clarification from the relevant authorities.
Government Aims to Make Vehicles More Affordable
The proposed reductions in Federal Excise Duty and customs duty are part of the government’s efforts to lower vehicle prices and improve affordability for consumers.
If implemented, the revised tax structure could provide relief to buyers of locally manufactured petrol cars, SUVs and jeeps.
The final impact on vehicle prices will depend on the implementation of the new auto policy and the official notification of revised tax rates.
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