Following the Budget 2024-25, the Suzuki Alto price in Pakistan has been affected by the new car taxation policy introduced by the federal government.
This policy imposes taxes based solely on engine size, aiming to simplify the tax system and boost revenue. The new taxes range from 0.5% to 12% of the vehicle's value, depending on the engine size. As Suzuki Alto is the company's entry-level car, it falls into the first segment introduced by the PML-N government.
Previously, the price of a Suzuki Alto with an engine size of less than 850cc was Rs2,331,000, with an old tax of Rs10,000. Under the new proposed rate of 0.5%, the new tax rate is Rs12,500, making the new car price Rs2,342,655.
The tax rates for cars based on engine size in Pakistan after the Budget 2024-25 are as follows: up to 850cc at 0.5%, 851 to 1000cc at 1%, 1001 to 1300cc at 1.5%, 1301 to 1600cc at 2%, 1601 to 1800cc at 3%, 1801 to 2000cc at 5%, 2001 to 2500cc at 7%, 2501 to 3000cc at 9%, and above 3000cc at 12%.
These taxes are expected to generate higher revenue for the government by reflecting the true market value of the vehicles. However, the impact on consumers is anticipated to be less severe for tax filers who can adjust the tax as an advance.
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