Govt Increases Luxury Tax on New Cars Over 1600cc by 100%

The government has released the fiscal budget for 2022-23 which shows several significant changes. Under the new budget, the government has proposed an advance tax of 200 percent on the purchase of cars with engines larger than 1600cc. As per a document available with ProPakistani, the government has increased the advance tax on the aforementioned vehicles by 100 percent for non-filers only. Although this tax will have no impact on the car’s price tag, it will aid the government in collecting more taxes from people with high purchasing power and bring them into the tax net. The document also states that the government will also charge a two percent additional advance tax from the buyers of high-end luxury electric vehicles (EVs), although no parameters for that specific segment have been mentioned at this time. The government seeks to continue with the auto sector’s current progress, along with encouraging the industry to completely indigenize the production of vehicles and their parts. Note: The story is still developing as more budget details continue to arrive. Stay tuned!