Finance Minister Shaukat Tarin announced on Friday to extend the tax exemption announced for 850cc vehicles to vehicles with an engine capacity of up to 1000cc in order to expand options for buyers.
He made the announcement while presenting the revisions in the budget for next fiscal years 2021-22 in National Assembly.
The decision, as per reports, was taken after government found that the tax exemptions for vehicles up to 850cc provide limited options to buyers.
The prices of the 1000cc vehicles could also witness a decline from the start of the next fiscal year from July 1, 2021 after the tax exemptions.
While presenting budget earlier this month, the finance minister had announced to abolish the Federal Excise Duty (FED) and Value Added Tax (VAT) on locally manufactured vehicles.
He also announced to exempt imported vehicles from customs duty and regulatory duty in order to support the small vehicle sector.
The minister had also announced tax relief for electric vehicles.
