Honda Atlas Cars (Pakistan) Limited has revised the prices of all its cars in light of the government’s revision in FED in the fiscal budget 2019-2020 which came into effect from 1st July 2019.
The government recently introduced fresh rates of Federal Excise Duty (FED) rates on all categories of cars and these were beneficial for cars with engine capacity of 1700CC but resulted in additional tax on all cars below this category. The following slabs of FED have been announced in the fiscal budget:
- 2.5% FED on cars up to 1000 cc engine displacement
- 5% FED on cars between 1001 cc and 2000 cc engine displacement
- 7.5% FED on cars above 2001 cc engine displacement
The FED before this was applied at a flat rate of 10% on cars with an engine capacity of 1700CC and above; the policy was met with skepticism and a mixed bag of emotions as the prices of cars below 1700CC were set to rise.
There was doubt that manufacturers would go through with decreasing the price as the devaluation of the rupee this year had led carmakers to increase their prices multiple times but Honda Atlas is one of the first companies to revise their prices which includes a decrease in their models that have an engine capacity of 1700CC and above.
The company has issued a notification in this regard and it explicitly stated that the revision is due to the changes made by the government in the FED and some lesser impact of Forex.