The cost of buying a car in Pakistan is set to rise even more as the government imposes a hefty 25% sales tax on locally made vehicles, particularly targeting cars with engines over 1400 cc.
This decision comes at a time when the automobile industry is already struggling due to high taxes and import restrictions.
This new tax aims to increase government revenue, but it’s likely to make buying a car even more challenging for consumers who are already facing record-high prices.
In January 2024, there was a slight improvement in automobile sales compared to the same month in 2023, but overall, the industry is facing uncertainty and crisis.
Economic and political instability over the past few years has contributed to the downturn in the automobile market, and it’s expected that the industry will continue to face challenges in the coming months.
With soaring car prices, high auto financing rates, and low consumer purchasing power, buying a car has become increasingly difficult for many people in Pakistan.