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)|
|1||Toyota Corolla Altis Grande||<1800cc||4,499,000-4,859,000||150,000||150,000||300,000|
|2||Hyundai Elantra GLS||<2000c||4,949,000||200,000||200,000||400,000|
|4||Hyundai Sonata 2.0||<2000cc||6,999,000||200,000||200,000||400,000|
|5||DFSK Glory 1.8 CVT||<1800cc||5,159,000||150,000||150,000||300,000|
|8||Hyundai Sonata 2.5||<2500cc||7,849,000||300,000||300,000||600,000|
|12||Isuzu D-Max V-Cross||<3000cc||6,600,000-6,960,000||400,000||400,000||800,000|
|13||Kia Sorento V6||<3500cc||7,499,000||450,000||450,000||900,000|
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.