The new advanced tax rates on cars have finally taken effect across Pakistan as of July 1, 2022. The government included these taxes to save precious foreign exchange reserves by curbing auto-sector imports.
A recent report suggests that Pak Suzuki Motor Company (PSMC) has notified the application of new advance tax rates on its cars. According to details, the tax rate changes are as follows:
|Cars||Advance Tax Before 2022-23 Fiscal Budget (Rs.)||Advance Tax After 2022-23 Fiscal Budget (Rs.)||Difference (Rs.)|
As per a recent report, PSMC set yet another record by selling more than 16,000 cars in June 2022, breaking its previous record of over 15,500 in December 2021. Although the sales breakdown is unknown, reports suggest that the new Suzuki Swift has contributed significantly to the overall increase in sales.
Speculations suggest, however, that all carmakers including PSMC will experience a decline in sales due to rising fuel costs, vehicle prices, and a massive increase in tax on car sales. The decline will likely occur by late 2022 or early 2023.
For now, the sales will remain consistent with prior orders still in the pipeline.