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25% Sales Tax Charged on Locally Manufactured Vehicles

25% Sales Tax Charged on Locally Manufactured Vehicles. Pakistan Raises Sales Tax on Vehicles, Gas Prices Soar Amidst Inflation Concerns

Key Points:

  • 25% sales tax imposed on locally manufactured vehicles: This targets vehicles priced at Rs 4 million or more or those with 1400cc+ engines.
  • Gas prices to increase by 65% or more: This move aims to fulfill an IMF demand but will impact both protected and non-protected consumers.
  • CNG sector faces additional burden with a Rs 170 per mmbtu increase.
  • Urea fertilizer companies to face a uniform gas tariff.


  • These measures, while aiming to boost government revenue, add to the burden on consumers already struggling with inflation.
  • The potential impact on various sectors and income groups requires further analysis.

Various measures approved by the Economic Coordination Committee (ECC) of Pakistan:

Boosting Exports:

  • Jewelry Policy Reform: The committee agreed to amend import and export regulations for precious metal jewelry and gemstones, aiming to promote this export-oriented sector.
  • Service Sector Opening: A committee was formed to explore policy changes for opening up the service sector, potentially benefiting exports.

Other Measures:

  • Government Guarantee for Karandaaz: ECC approved a Share Subscription Agreement between National Credit Guarantee Company Limited (NCGCL) and Karandaaz to support small businesses.
  • Intelligence Funds Increase: The Bureau received additional funds to address terrorism and anti-state activities.
  • World Bank Loan Approval: Technical supplementary grant was approved to cover the remaining funds from a World Bank loan.

Note: The information above might not be accepted 100%. Please verify from your own sources. We will not be responsible for any kind of loss due to our content.

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