Cars become more expensive as sales tax discount abolished

The government on Tuesday proposed abolition of sales tax discounts for several sectors in the federal budget for the fiscal year 2025.

The finance bill proposes that a 12.5 percent sales tax discount on locally assembled 850cc vehicles should be abolished. Now, buyers will have to pay 18 percent sales tax on purchase of locally assembled 800cc vehicles.

The 10 percent sales tax discount on vermicelli and sheermal is being abolished and now there will be 18 percent sales tax on the sale of these items.

A 5 percent discount on cinema equipment has been abolished and now anyone buying cinema equipment will have to pay 18 percent sales tax.