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Car Prices Likely to Rise After Govt Removes Limit on Import Duties

The government has proposed withdrawing fixed duties and taxes on the import of old and used Asian cars above 1300cc in its budget for the fiscal year 2023-24.

The current cap on duties and taxes for imported used cars up to 1800cc was put in place in 2005. The government’s decision to withdraw the cap is likely to lead to higher prices for imported used cars, as customs officials will now be able to charge duties and taxes based on the actual value of the vehicle.

The decision is part of the government’s efforts to raise revenue and reduce the country’s budget deficit. The government is also facing pressure from the International Monetary Fund (IMF) to implement reforms to stabilize the economy.

Pakistan’s economy is in turmoil amid financial woes and the delay in the IMF agreement. The IMF has been providing Pakistan with financial assistance since 2019, but the government has been struggling to meet its conditions for continued support.

The government’s budget for fiscal year 2023-24 is being closely watched by economists and investors. It is seen as a key test of the government’s ability to implement reforms and stabilize the economy.

The government has proposed a number of measures, including raising taxes, reducing spending, and increasing privatization. However, it remains to be seen whether they will be enough to satisfy the IMF and avoid a default on Pakistan’s debt.

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    • Appeal to whom. Where is the Government? Do u think these people sitting in the power corridors care for us?

    • Government should reduce the prices of imported vehicles and allow all sort of cars to be imported to compete the local manufactures in prices and quality.

      This move, will compel the local vehicle manufacturers to improve their product quality and lower the prices to compete with the imported vehicles.

      Quality of local manufactured vehicle is so bad that no other country is ready to import them, local people are being looted and deprived of their hard earned wealth with these local manufactured crap vehicles.

  • In my opinion Imports of used cars should be banned till the situation of foriegn exchange reserve is improved and it reaches to 100 billion dollars reserves.

    • اے کاش کوئ اتانی بصیرت رکھنے والا ہمارا حکمران ہو جاے ۔۔تو بات بن جائے

  • Taxes on Local Manufacturing cars must be reduce , as Car Prices are unbearable due to High Taxes and Duties

  • GoP only creates instability by frequent duty structure changes…Many grey areas to comment on new budgetary proposals but in one two months, target achievement will say everything that how good the homework is..

  • Costume and duty should be able go down on the imported and used car then citizens increase their happiness

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