In budget 2021-22 that was given on June 11, 2021 in the National Assembly, the Finance Minister Shaukat Tareen presented that small cars and motorcycles become cheaper. According to this budget, the tax has reduced on the vehicles, which are smaller than 850 cc. The tax has reduced on new branded motorcycles and tractors.
Cars Prices in Budget 2021-22:
They presented that sales tax, excise tax, and additional customs duty also less on cars that less than to 850 cc. In the budget 2021-22, for the interest payments, the federal government has given PKR Rs 1,330 billon defense allocation with Rs 3,105 billion.
The federal government has reduced 17 to 12.5% sales taxes on local cars. In the budget 2021-22 declaration, the Finance Minster Shaukat Tareen also announced abolishing value added tax on local vehicles. He said that the government has decided to decrease federal excise duties on vehicles, which are less than to 850 cc.
In this budget, the finance minister presented that the government has also reduced 17% to 1% sales tax on electric vehicles. He declared that excise tax and value added tax (VAT) on cars up to 850 cc have been removed. On the small cars, the sales tax, excise tax, and additional customs are cu. By this concept, the vehicles prices will be lower that help to increase sales.