The outgoing government now okayed 25pc sales tax on locally manufactured vehicles, in another blow to consumers who are already struggling with record high prices.
In the recent meeting, Finance Minister Dr Shamshad and other officials approved 25pc sales tax on locally made vehicles, targeting cars with engine over 1400 cc.
The government’s new move eyes garnering revenue, but it will further deteriorate the automobile market.
In a similar development, automobile sales in January 2024 improved by 30pc compared to January 2023. Passenger car sales saw little improvement reaching 7,802 units compared to 6,021 units in January 2023.
In last couple of years, economic and political uncertainties have been cited as reasons for the downturn, with ongoing crises in the industry expected in the next quarter.
Overall, soaring car prices, record high auto financing, and low consumer purchasing power contributed to the sales in the first seven months of fiscal year.
