- The new federal budget adjusts Suzuki Alto prices in Pakistan.
- Tax rates now vary based on vehicle engine size.
- Entry-level Suzuki Alto faces a new tax rate of 0.5%.
The latest federal budget for 2024-25 in Pakistan has led to a significant adjustment in the price of the Suzuki Alto, influenced by the government’s new taxation policy on automobiles. This policy, introduced by the PML-N government, is designed to streamline the tax structure and enhance revenue collection by levying taxes based on the engine size of vehicles.
Under the new regime, tax rates now range from 0.5% to 12% of a vehicle’s market value, depending on its engine capacity. As the Suzuki Alto is an entry-level vehicle, it falls into the initial tax bracket. Prior to the budget, a Suzuki Alto with an engine size under 850cc was priced at Rs2,331,000, carrying a previous tax of Rs10,000. With the new 0.5% tax rate, the tax increases to Rs12,500, which pushes the car’s price to Rs2,342,655.
The detailed tax rates for vehicles based on their engine size under the 2024-25 budget are categorized as follows: vehicles up to 850cc are taxed at 0.5%, 851cc to 1000cc at 1%, 1001cc to 1300cc at 1.5%, 1301cc to 1600cc at 2%, 1601cc to 1800cc at 3%, 1801cc to 2000cc at 5%, 2001cc to 2500cc at 7%, 2501cc to 3000cc at 9%, and those above 3000cc at 12%.
These adjusted taxes are designed to more accurately reflect the true market value of vehicles, and they are expected to boost government revenues. For consumers, the impact of the tax is expected to be manageable, especially for registered tax filers who can offset this as an advance tax.