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1400CC Cars Get a Shocking Sales Tax Hike

It’s time to saddle up for another price hike as the government has increased the General Sales Tax (GST) on cars with 1,400CC or larger engines from 18% to 25%.

The finance division proposed that GST be increased on non-essential items, which also include “luxury cars”. Although, the previous report couldn’t be corroborated as the decision was still “under consideration” at the time.

Previously, the government had increased GST on all cars from 17% to 18%, which prompted a wave of price hikes. After the tax hike from 18% to 25%, cars with 1400CC engines or larger will see another price hike soon. Given the huge tax increase, this price increase will be equally massive.

Radio Fee

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.

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