ISLAMABAD – Pakistani government proposed increasing General Sales Tax (GST) on all cars including entry level rides like Alto, which will directly impact consumers.
Under recent proposal, the existing tax concession will be ended after tweaks in Eighth Schedule of the Sales Tax Act. If approved, this would bring Alto and other entry level cars under regular 18pc Sales Tax bracket.
Suzuki Alto Expected Price
If the government planned to go ahead with proposal, Alto price would go up from Rs 120,000 to nearly Rs 180,000, depending on the variant.
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Suzuki Alto VXR AGS: 2,989,000
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Suzuki Alto VXL AGS: 3,045,000
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Suzuki Alto VXL AGS: 3,140,000
Buyers will need to pay more upfront when purchasing smaller, locally assembled vehicles. The tax hike is part of the government’s plan to reduce exemptions and enhance tax collection by applying a uniform GST structure.
The government also increased sales tax on hybrid electric vehicles (HEVs) from 8.5% to 18%, nearly doubling the cost for buyers. This change comes after a year of a lower tax rate designed to promote cleaner, more fuel-efficient cars and reduce fuel imports.
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