Expected Price Hike For Local HEVs After New Tax Slab

With the release of the new fiscal budget 2024–25, the government dashed consumer hopes for a local HEV tax exemption or at least a reduction in taxes.
Clause 73 of the 8th schedule, which permits the government to levy an 8.5% general sales tax on locally produced HEVs from "The Sales Tax Act, 1990," is removed in accordance with the "Finance bill 2024." As a result, the CKD HEVs are now part of the general list of cars and are subject to a 25% GST.

Let's just say that prices for domestically built hybrid and electric vehicles (HEVs), such as the Corolla Cross and the Haval H6 and Jolion HEV, will increase. Remarkably, Finance Minister Muhammad Aurangzeb disclosed during his budget address that although the government will support local business, things are actually going to be different behind closed doors.

Estimated Price Jump

Haval Cars:

The price of the Jolion HEV is expected to rise by Rs. 1,405,000 in accordance with the new general sales tax (GST) slab, from the present cost of Rs. 9,295,000 to Rs. 10,700,000.

In the meantime, it is predicted that the price of Sazgar Engineering's well-known HEV in the nation, the Haval H6 HEV, would increase by Rs. 1,804,506, making it available for Rs. 13,670,000 instead of Rs. 11,866,500.

Corolla Cross:

The Corolla Cross HEV's present price of Rs. 9,399,000 might increase by Rs. 1,429,000, making it a new price of Rs. 10,828,000.
In a same vein, it is anticipated that the price of the Corolla Cross HEV X would rise by Rs. 1,497,000, to Rs. 11,346,000 from Rs. 9,849,000.

Hyundai Santa Fe:

A price hike of Rs. 1,975,000 is anticipated for the Hyundai Santa Fe smart, bringing its current price of Rs. 12,990,000 to Rs. 14,965,000.
It is also expected that the price of the Hyundai Santa Fe Signature would increase by Rs. 2,235,000, from Rs. 14,699,000 to Rs. 16,934,000.

New With Holding Tax

The withholding tax on new automobiles, which was formerly determined by the engine capacity, will now be determined by the vehicle's invoice price (applying to cars with engines up to 2,000cc).

For example, you recently paid Rs. 3.8 million for a Suzuki Wagon R in Pakistan. The registration cost would have been Rs. 20,000 under the previous method. The new registration cost for the same vehicle, however, may be Rs. 38,000 due to the proposed budget adjustments, a considerable hike.

Arifa Hussain

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