There is a chance that prices of small cars and motorbikes will decrease in the annual budget 2021/22, reported 24NewsHD TV channel.

Sources revealed on Friday that it has been suggested in the budget to decrease the tax rate on small cars having an engine capacity of 850cc.

It has also been suggested to lower taxes on brand new motorcycles and on new models of tractors. 

It is proposed to cut sales tax, excise duty and additional customs duty on small cars which might bring the prices of these vehicles down and boost their sales. 

The automobile manufacturing companies have failed to decrease the prices of the cars despite a visible decrease in the dollar rate in the last few months. It has been a practice in Pakistan that prices of goods go up with the rise in dollar price but vice versa is not true. The government institutions seem unable to monitor the prices and make the manufacturer cut the prices down. 

According to a report of 24NewsHD TV channel, the automobile companies increased the prices of the cars from 17 percent up to 45 percent since June 2019. The dollar price went up to Rs168 however it has come down to Rs153 recently which is almost equal to June 2019 price. However, car buyers got no relief in prices with the decrease of the dollar rates. 

Reporter Waqas Azeem