KARACHI: Finance Minister Shaukat Tarin has extended tax exemption to up to 1000cc vehicles in Pakistan which may bring down Rs 160,000 in Suzuki Cultus and other similar vehicles.
Winding up discussion on the budget for next fiscal year 2021-22 in the National Assembly on Friday, he said, “The tax relief earlier given to the auto sector for the vehicles up to 850cc is being extended to 1000cc vehicles.”
He further announced several other tax exemptions for vendors who export spare parts and two-wheelers, three-wheelers other vehicles during his speech. He said the government would facilitate all the stakeholders who will try to exports local brands.
After this decision of the government, the price of Pak Suzuki vehicles will be affected. Currently, Suzuki is the only company making 660cc (Suzuki Alto), 800cc (Suzuki Pick Up), and 1000cc (Cultus, Bolan, Wagon E) vehicles. Meanwhile, no other listed company in Pakistan is manufacturing such vehicles.
Pak-Suzuki had also announced to bring down the prices of Suzuki Alto, Bolan and Suzuki Pick-Up by at least Rs 160,000.
The Finance Bill presented in the National Assembly proposed tax measures for vehicles up to 1000cc under the Customs Revenue Measures and suggested exemption of Additional Customs Duty (ACD) and Regulatory Duties (RD).
It further proposed reduction of Customs Duty (CD) from 30% to 15%. For Complete Built-Up Unit (CBU), it was proposed to reduce CD from 25% to 10% while for local manufacturing from 12.5% to 5%.
Few days back, Federal Minister for Industries Khusro Bakhtyar highlighted that the new auto policy will help provide affordable small cars from 850cc to 1,000cc and several other incentives for exporters.