FBR Raised Sales Tax for Luxury Vehicles

FBR Raised Sales Tax for Luxury Vehicles

Islamabad: The Federal Board of Revenue (FBR) has introduced enhanced sales tax. This will be applicable to the locally produced/assembled cars worth over 4 million. This measure is going to increase tax revenue but also affect the already struggling automotive industry of Pakistan. The consumer has also expressed concerns due to increased sales tax prices on cars priced over 4 million.
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According to the sources, a 25% sales tax will significantly increase the new prices of the cars for engine capacities over 1400cc and above. FBR has deemed this increase in sales tax to improve the tax base and revenue for the country but ultimately affects the end users. It is also pertinent to mention that this increase in tax was approved by the Economic Coordination Committee (ECC) of the Federal Cabinet.

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