All Pakistan Motor Dealers Association (APMDA) Chairman HM Shahzad has expressed serious concern over a likely sharp increase in vehicle prices following the government’s decision to raise the sales tax on small cars.
As reported by 24NewsHD TV Channel on Thursday, the recent budget hike could place even more pressure on consumers already struggling with high automobile costs.
According to HM Shahzad, the government has increased the sales tax on small vehicles from 12.5 per cent to 18 per cent. This sudden jump is expected to significantly raise the prices of popular models, including the Suzuki Alto, which could become costlier by as much as Rs 150,000.
He emphasised that locally assembled vehicles in Pakistan are already unaffordable for the average citizen. This is largely due to the fact that hybrid vehicles manufactured within the country are already subject to the full 18 per cent sales tax, making them increasingly out of reach.
To address the looming affordability crisis, Shahzad has called on the government to reconsider its import policies. He suggested that allowing the commercial import of vehicles could not only help stabilise market prices but also generate up to Rs200 billion in revenue for the national exchequer.
Furthermore, the association has proposed that the import of used cars up to five years old be permitted.
Reporter: Kavish Memon