In the recent budget for the fiscal year 2021-22, one of the sectors that have gotten major government support is the automobile sector of Pakistan.
Last week, Finance Minister Shaukat Tarin announced to extend the tax exemption proclaimed for 850cc vehicles to vehicles with an engine capacity of up to 1000cc in order to expand options for buyers.
The Finance Minister announced that Federal Excise Duty (FED) will be decreased by 2.5% on all cars, while the Sales Tax has been reduced from 17 percent to 12.5 percent. The budget reform means a drop in prices for the low-end city cars for the customer, which would increase their affordability for the masses of Pakistan.
According to Pakwheels, a renowned Pakistani auto blog, the prices of cars up to 1000cc will reduce by 2.439 percent. The expected reduced prices of cars up to 850cc are:
Suzuki Alto VX would drop by Rs74,000 from an old price of 1,198,000 to 1,124,000. Alto VXR would decrease by Rs88,000 from Rs1,433,000 to Rs1,345,000. Alto VXL used to sell at Rs1,633,000, however, it will now cost Rs1,530,000.
Similarly, the old price of Prince Pearl was Rs1,149,000, and the new low price is Rs1,077,000. United’s Bravo previously was at Rs1,099,000 and the new price would be Rs1,030,000.
The price of the Cargo Van was Rs1,075,000, it will now cost Rs1,010,000. Meanwhile, the previous rate of Bolan VX was Rs1,134,000 and its new price is Rs1,065,000.
Prices of 1000cc cars:
Suzuki Wagon R: The first variant, Wagon R AGS: Its price will decrease by Rs46,097, and now it will cost Rs1,843,903.
The second variant, Wagon R VXL, will see a drop of Rs42,194.70, and its new price will be Rs1,687,805. The revised price of Wagon R VXR, is going to be Rs1,600,000 as compared to its old rate of Rs1,640,000.
Suzuki Cultus: The first one, Cultus VXR, will see a price cut of Rs43, 414 and will cost Rs1,736,586. The price of second variant, Cultus VXL, will reduce by Rs48,048. and will reach to Rs1,921,952.
Lastly, the top-of-the-line variant, Cultus AGS, will see a decline of Rs51, 951. The previous price of this car was Rs2,130,000, and new rate is going to be Rs2,078,049
KIA Picanto 1.0 A/T: The hatchback by KIA will get a price reduction of Rs49,791, as its old price was Rs2,049,000, and new expected price will be Rs1,999,209.
