On Monday, a senate committee approved a one-time Rs. 500 “radio fee” for vehicle registration.
Senator Irfan Siddiqui chaired a meeting with the Senate Standing Committee on Information with Senator Fauzia Arshad and Senator Syed Waqar Mehdi, stating that more than three million cars are registered annually and all use the radio.
He suggested including Rs. 500 radio fee in vehicle registration to generate Rs. 15 billion in revenue for Radio Pakistan. The committee unanimously approved his proposal.
Tax Rate Hikes
The government recently increased the General Sales Tax (GST) on cars from 17% to 18%. The 1% increase in GST rates prompted carmakers to announce price hikes.
Reports suggest that the government may increase taxes on cars in the 2023-24 fiscal budget to replenish the national exchequer.
The government has already proposed an 8% increase in taxes on luxury items. The Federal Board of Revenue’s (FBR) definition of luxury items includes passenger cars with big engines.
With these hikes, the prices of all economy cars are likely to reach around Rs. 4 to 5 million.