These Are New Car Prices After 200% Increase in Advance Tax in Budget 2022-23

The federal government has imposed a 200 percent advance tax on the purchase of cars with engine displacement over 1600cc for non-filers. This decision is likely to impact the demand for several cars in Pakistan. Here’s how much advance tax the customers will have to pay for locally assembled ‘luxury cars’: Although this tax will have no impact on the price tags directly, it will increase the overall purchasing cost of these cars. It will also aid the government in collecting more taxes from people with high purchasing power and bring them into the tax net. 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.