The government today, in its second supplementary bill, has introduced 10 major amendments to the Finance Act 2019 with most related to boosting investment. Few of these amendments relate to the automobile sector.
Non-Filers Allowed to Buy Cars
In the previous amendment, government restricted non-filers of tax returns to purchase cars up to 1300cc engine capacity or below. Now according to the latest revision, non-filers are allowed to purchase locally manufactured vehicles irrespective of engine capacity. Finance Minister Asad Umar said the decision was taken to address concerns of local vehicle manufacturers.
10% Federal Excise Duty on 1700cc & Above Cars
A 10% federal excise duty (FED) was proposed for locally manufactured motor vehicles of engine capacity of 1800cc and above. However, in order to address the concerns of local auto manufacturers, the capacity has now been revised to 1700cc.
With this amendment, prices of locally assembled 1.8 liter volume sellers, the Honda Civic and Toyota Corolla Altis are likely to go up. Honda Civic has a 1799cc engine, where the Corolla Altis has a 1798cc engine under its hood. Currently, the Honda Civic 1.8 liter variants are priced between PKR 28.09 lac to PKR 29.59 lac, whereas the Corolla Altis 1.8 liter variants are priced from PKR 26.89 lac to PKR 29.99 lac.
More information will be updated as and when available, stay tuned to CarSpiritPK.