The federal budget 2021-2022 is a breath of fresh air for the automobile sector as the prices of locally manufactured cars will drop after cut in excise duty.
Finance Minister Shaukat Tarin announced slashing of Federal Excise Duty (FDE) on manufactured locally vehicles under 850cc from 2.5% to naught.
Read Also
Milestones of Fawad Chaudhry Besides EV-Policy
Pak Wheels, a popular online car dealing platform, shared the details of the impact of the tax cuts on car prices.
While speaking at National Assembly Federal Finance Minister Shaukat Tareen said that sales tax on these cars also has been reduced to 12.5% from 17%, meaning the reduction of 4.5%.
Click here for details: https://t.co/njnDdUgwVx #Budget2021 pic.twitter.com/1nMHLzLaoF— PakWheels.com (@PakWheels) June 11, 2021
To boost local manufacturing and to make it affordable for the middle-income group, the federal government also reduced sales on locally assembled cars from 17% to 12.5%.
The government has announced tax reductions on locally assembled cars upto 850cc!
Click here for details: https://t.co/7Dr945EPF5 pic.twitter.com/9kDFbcxAbD— PakWheels.com (@PakWheels) June 11, 2021
The government has also taken measures to encourage electric car manufacturing in Pakistan.
The country unveiled its first electric vehicle policy in December 2020.