The automotive market in Pakistan might see big changes as the government is thinking about raising the withholding tax on new car purchases. This proposed increase would apply to cars with various engine sizes, from less than 850 cc to more than 2000 cc, and would switch from a fixed tax amount to a percentage-based tax rate.
KIA Sportage: A Leader in Its Class
The locally made KIA Sportage stands out in its class with its stylish design, high-end interior, and modern features. It has a strong 2.0-liter gasoline engine with a displacement of 1999 cc, producing 115 kW at 6200 rpm and 196 Nm of torque at 4000 rpm. The Sportage comes with a 6-speed automatic transmission and offers three driving modes—normal, eco, and sport—providing a smooth and versatile driving experience.Current Prices of KIA Sportage Variants
- Sportage ALPHA: Rs 7,300,000
- Sportage FWD: Rs 7,740,000
- Sportage AWD: Rs 8,470,000
- Sportage Limited Edition: Rs 9,000,000 (ex-factory price remains unchanged)
Proposed Tax Rates on Cars in Pakistan (2024-25 Budget)
| Engine Size (cc) | Tax Rate (%) |
|---|---|
| Up to 850 | 0.5 |
| 851 to 1000 | 1 |
| 1001 to 1300 | 1.5 |
| 1301 to 1600 | 2 |
| 1601 to 1800 | 3 |
| 1801 to 2000 | 5 |
| 2001 to 2500 | 7 |
| 2501 to 3000 | 9 |
| Above 3000 | 12 |
Impact on the Automotive Market
If the government raises the withholding tax as planned, it could make new cars in Pakistan, like the KIA Sportage in the 1801 to 2000 cc range, more expensive. Buyers will have to factor in this additional cost when deciding to purchase these vehicles.As the government continues its plans, the car market in Pakistan will pay attention to the final decisions and how manufacturers like KIA adjust their prices. Currently, the KIA Sportage remains popular for its stylish design, good performance, and modern features.
