GOVT HAS NO INTENTION OF FED REMOVAL ON 1700cc AND ABOVE
There is fake news in the market about the removal of 10% FED on all cars above 1700cc. Our sources confirmed that there is no such intention by the Government or the FBR on the removal of 10% FED.
Local cars that have an engine displacement of 1700cc and above will continue to pay the 10% FED which means a higher price for all car manufacturers. The imposition of 10% FED on cars with an engine capacity of more than 1,700 cc had earlier sent up a trial balloon for the auto sector.
Following this, all manufacturers have also hiked prices of its cars by around 11.5% to pass on the impact of recently introduced federal excise duty (FED) on cars of over 1700cc capacity, coupled with rupee depreciation.
Recently, demanding premium from car buyers on the delivery of new vehicles have been so major issue in Pakistan recently Car manufacturers have agreed to blacklist the dealers involved in illegally demanding a premium from car buyers.
The government has also decided to establish an authority to keep a track on the auto industry players charging illegally premium from customers on the delivery of brand-new vehicles.