200% Increase in Advance Taxes on Cars Above 1600CC

200% Increase in Advance Taxes on Cars Above 1600CC

The government announced a 200% increase in Advance Taxes, on luxury cars, in the budget 2022-23. Cars having engines above 1600cc would be taxed 200%, according to the budget.

Finance Minister Miftah Ismail stated that the government aims to transfer the tax burden on the privileged class and therefore has decided on the tax increase. 

The new prices, and taxes (for filers and non-filers) for various cars are listed below.

New Car Prices

Here are the car prices after the increase in Advance Taxes. We have added the prices and taxes for both filers and non-filers. 

#Vehicles Engine Displacement (CC)Price (PKR)Current Tax for Filers(PKR) Previous Tax on non-Filers (PKR)Current Tax on non-filers(PKR) 
1Toyota Corolla Altis Grande<1800cc4,499,000-4,859,000150,000150,000300,000
2Hyundai Elantra GLS<2000c4,949,000200,000200,000400,000
3Hyundai Tucson<2000cc5,799,000-6,299,000200,000200,000400,000
4Hyundai Sonata 2.0<2000cc6,999,000200,000200,000400,000
5DFSK Glory 1.8 CVT<1800cc5,159,000150,000150,000300,000
6Kia Sportage<2000cc5,300,000-6,300,000200,000200,000 400,000
7BAIC BJ40>2000cc8,199,000200,000200,000400,000
8Hyundai Sonata 2.5<2500cc7,849,000300,000300,000600,000
9Kia Sorento<2400cc6,836,000-7,499,000300,000300,000600,000
10Toyota Fortuner2700-2800cc9,959,000-12,679,000400,000400,000800,000
11Toyota Hilux<2800cc7,359,000-9,729,000400,000400,000800,000
12Isuzu D-Max V-Cross<3000cc6,600,000-6,960,000400,000400,000800,000
13Kia Sorento V6<3500cc7,499,000450,000450,000900,000

Impact of Increased Advance Taxes

The increase in taxes will affect brands like Honda, Changan, Toyota (except Grande), and Suzuki. 

Hyundai cars would be affected the most because Tucson, Elantra, and Sonata are all above 1600cc.

According to an auto expert Mashood Ali Khan, the high prices will now affect the buying power of both the middle and upper-middle classes. 

He also added that the government should assist non-filers in becoming filers instead of using such penalties. 

While imposing such heavy taxes is keeping many skeptical, once the budget is approved, and the policies are implemented, we will get to see their real impact. 

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