The prices of double cabin (4×4) vehicles, including Hilux Revo and Isuzu D-Max, are expected to increase after the federal government imposed Federal Excise Duty (FED) on them. Under 2020-21 budget, the government has imposed 7.5% FED on locally manufactured double cabin cars, while 25% FED has been imposed on imported ones.
During his budget speech, Federal Minister of Industries and Production Hammad Azhar said these vehicles are originally for goods transport and commercial purposes. “However, some people are using this vehicle as a status symbol in Pakistan,” he said, adding this is the reason government has applied new taxes on these vehicles.
Earlier, in its report, Pakistan Automotive Manufacturers Association (PAMA) said that only 3 Isuzu D-Max vehicles were sold in May 2020 Vs. 70 in May 2019. Meanwhile, Hilux sold just 72 cars last month as compared to 468 in the same month last year. Furthermore, Hilux has seen 37% drop in sales to 3,310 units in the current fiscal year from 5,323 vehicles during the same duration last year. On the other hand, Isuzu D-Max has seen 30% sales growth to 449 units in FY 2020 from 343 vehicles in FY 2019.
Meanwhile, Isuzu has recently launched a facelift of D-Max. The company has improved shape of the exterior, including front grills along with upgradation of vehicle’s interior.
Meanwhile, the government has removed Ambit of Advance Tax (AAT) on vehicles with engine power up to 200cc, including motorcycles and motor rickshaws. In his speech, Azhar said the step is being taken to impart clarity to the existing provision of law.
Meanwhile, the government has not imposed any new tax in the budget, citing the COVID-19 pandemic. In its speech, Azhar said the government has presented a “relief budget” for the people of Pakistan. He said this budget will help the country and its people in fighting against the pandemic.
