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Islamabad: The federal government in Budget 2024-25 has proposed a substantial rise in withholding tax on new car purchases, with proposed changes not limited to a flat increase but a percentage-based hike affecting cars with engine capacities ranging from under 850 cc to 3000 cc and above.
The new tax rates range from 0.5 percent to 12 percent of the vehicle’s value, depending on the engine size. Suzuki Cults, the iconic hatchback from the country’s oldest car manufacturer, falls in the 850-1000cc car segment.
The new tax rates will result in higher taxes for consumers, reflecting the true market value of their vehicles. However, tax filers can adjust the tax as an advance, reducing the impact on them.
Suzuki Cultus Price in Pakistan 2024
| Car Engine | 1000cc |
| Old Tax | Rs20,000 |
| New Tax | Rs38,580 |
| New Proposed Rate | 1percent |
| Tax Diff | Rs18,580 |
| New Car Price | Rs3,876,580 |
Revised Withholding Taxes on Suzuki Cultus 2024
| Up To 850cc | Current Value | Current Tax | Proposed Tax (%) | Proposed Tax (pkr) | Difference (pkr) | |
| Suzuki Cultus | Suzuki Cultus VXR | 3,858,000 | 20,000 | 1.00% | 38580 | 18,580 |
| Suzuki Cultus | Suzuki Cultus VXL | 4,244,000 | 20,000 | 1.00% | 42440 | 22,440 |
| Suzuki Cultus | Suzuki Cultus Auto Gear Shift | 4,546,000 | 20,000 | 1.00% | 45460 | 25,460 |
Taxes on Cars in Pakistan after Budget 2024-25
| 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 |
With above mentioned taxes, the government will get higher taxes reflecting the true market value of their vehicles. The impact on consumers is expected to be mitigated for tax filers who can adjust the tax as an advance.
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