WEB DESK: Following the Budget 2024-25, the federal government has introduced a revised car taxation policy aimed at enhancing tax revenue.
Under the new policy, tax rates on vehicles now range from 0.5 per cent to 12 per cent of their value, depending on engine size. The Suzuki Cultus, a popular hatchback from Pakistan’s oldest automaker, falls within the 850-1000cc segment.
These adjustments mean consumers will face higher taxes, more closely aligned with the true market value of their vehicles. However, tax filers have the option to adjust these taxes in advance, potentially easing the financial impact.
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This new taxation framework marks a significant change in how vehicle prices will be determined and taxed in Pakistan, impacting car buyers across the country.
Suzuki Cultus expected price after tax revision
| Car Engine | 1000cc |
| Old Tax | Rs20,000 |
| New Tax | Rs38,580 |
| New expected rate | 1percent |
| Tax difference | Rs18,580 |
| New Car Price | Rs3,876,580 |
