In a sudden move, the caretaker government has decided to increase the General Sales Tax (GST) 18% to 25% on all cars above Rs. 40 lacs regardless of engine capacity. Earlier, 25% GST only applied to vehicles with engines above 1400cc; however, any car above 1000cc will now be considered a luxury vehicle in the country.
The decision was taken under pressure from the International Monetary Fund (IMF) during a meeting of the Economic Coordination Committee (ECC) on Tuesday. The Ministry of Finance has also shared their statement on the matter, saying that the proposal was passed yesterday, but did not share any details of the new policy or how it will be implemented.
However, an official notification is yet to be issued by the concerned government department for implementation of the 25% General Sales Tax (GST) on all vehicles above Rs. 40 lacs, which affects the majority of cars in the country except a few options from Pak Suzuki Motor Company (PSMC) and Prince Pearl.
Vehicles to Remain Unaffected
| Car Model | Price (PKR) |
|---|---|
| Prince Pearl | Rs. 1,850,000 |
| Alto VX | Rs. 2,251,000 |
| Alto VXR | Rs. 2,612,000 |
| Alto VXR-AGS | Rs. 2,799,000 |
| Alto VXL-AGS | Rs. 2,935,000 |
| WagonR VXR | Rs. 3,214,000 |
| WagonR VXL | Rs. 3,412,000 |
| WagonR VXL-AGS | Rs. 3,741,000 |
| Cultus VXR | Rs. 3,718,000 |
Vehicles to Be Affected
The vehicles that were charged 18% GST and will be affected by the new policy include:
| Car Model | Price |
|---|---|
| Suzuki Cultus VXL | Rs. 4,084,000 |
| Suzuki Cultus Auto Gear Shift | Rs. 4,366,000 |
| Suzuki Swift GL Manual | Rs. 4,336,000 |
| Suzuki Swift GL CVT | Rs. 4,654,000 |
| Suzuki Swift GLX CVT | Rs. 5,040,000 |
| Toyota Yaris GLI MT 1.3 | Rs. 4,399,000 |
| Toyota Yaris ATIV MT 1.3 | Rs. 4,659,000 |
| Toyota Yaris GLI CVT 1.3 | Rs. 4,689,000 |
| Toyota Yaris ATIV CVT 1.3 | Rs. 4,899,000 |
| Toyota Yaris AERO CVT 1.3 | Rs. 5,099,000 |
| Honda City 1.2L M/T | Rs. 4,699,000 |
| Honda City 1.2L CVT | Rs. 4,829,000 |
| Proton Saga 1.3L Ace A/T | Rs. 4,099,000 |
