Lucky Motor Corporation Limited (LMCL) has issued a press release, issuing clarity regarding price hike news circling the media. According to the official statement, the company did not make any revisions in the ex-factory prices of its cars.
However, following the enactment of a 1 percent capital value tax (CVT) on cars with engines larger than 1300cc, the purchasing cost of all cars has risen slightly, with the exception of the Kia Picanto.
Effective immediately, the prices subject to the new CVT rate are as follows:
The federal government has imposed a 1 percent CVT on cars with engines larger than 1300cc and electric vehicles (EVs) with battery packs larger than 50 kWh, effective from July 1, 2022.
It had initially proposed 2 percent CVT on vehicles with price tags over Rs. 5 million. Its purpose was to apply taxes on high-end vehicles with turbocharged engines such as Proton X70, MG HS, Haval Jolion, H6, etc.
According to various reports, FBR had reduced the CVT from 2 percent to 1 percent to benefit the public. However, the market notion is the new tax will make matters worse for mid-range and economy-car buyers.
Yousaf khan