Finance Minister Miftah Ismail presented the Federal Budget for the fiscal year 2022-23 in the National Assembly, which also had some major points pertaining to the automotive industry such has increased Advance Tax on cars with engine capacity above 1,600cc.
During his speech, Finance Minister Miftah Ismail said that in order to transfer tax burden from less privileged class to the elite, it was proposed to increase the Advance Tax on cars with engines above 1,600cc. Moreover, the tax rate for non-filers has been doubled as well from 100% to 200% in order to encourage people to come filers and actually save money.
Furthermore, it was also proposed to increase the Advance Tax on Electric Vehicles (EVs) to 2% of the total value of the car. However, this tax will be increased to 3% if value of vehicle crosses Rs. 5 million. “Provided that in cases where engine capacity is not applicable and the value of the vehicle is Rs5 million or more, the rate of tax collectable shall be 3% of the import value,” the Finance Bill read.
List of Cars Affected by Federal Budget 2022-23
- Toyota Corolla Altis Grande
- Hyundai Elantra GLS
- Hyundai Sonata 2.0L
- Hyundai Sonata 2.5L
- Hyundai Tucson
- Kia Sportage
- BAIC BJ40 Plus
- Toyota Fortuner
- Kia Sorento
- Toyota Hilux Revo
- ISUZU D-Max
- Changan Oshan X7
- Honda Civic
- DFSK Glory 580 Pro
- Proton X70
- Haval Jolion
- Haval H6
It is pertinent to mention that this is only the proposed Federal Budget 2022-23 and lawmakers in the National Assembly and Senate will discuss before passing the budget. If approved, the Annual Budget 2022-23 will affect several cars which are mentioned above as they have engine capacities of above 1600cc or value of more than Rs. 5 million.
Read more: Finance Minister Miftah Ismail Presents Budget 2022-23.
