Honda became the first automaker to revise its car prices in the light of the federal government implementing a revised FED and United Motors Limited have become the second company to follow their lead, increasing the price of its 800CC hatchback Bravo to Rs. 925,000, an increase of Rs. 30,000.
The company has issued a notification to its dealers across the country and has stated that due to the introduction of the Federal Excise Duty of 2.5% on cars that have 800CC engine displacement, the company has revised the price of its car.
Alongside United Autos, Honda has also changed the prices of its models and Isuzu too has hiked the price tags on its models. The Isuzu D-Max V-Cross M/T now costs Rs. 4,650,000 while previously it was Rs. 4,450,000 and the V-Cross A/T saw its price tag go from Rs. 4,675,000 to Rs. 4,875,000.
In this year’s budget 2019-20, the federal government has imposed FED on all categories of local cars, the slabs are as follows:
- 2.5% FED on cars from 0CC to 1000CC
- 5% FED on cars from 1001CC to 2000CC
- 7.5% FED on cars of 2001CC and above
The government made this move to reduce the impact of a single high FED on vehicles with engine capacity of over 1,800cc which was hurting some local automakers like Honda and Toyota.