Govt to Implement 25% General Sales Tax on Cars Above Rs. 40 Lacs

In a sudden move, the caretaker government has decided to increase the General Sales Tax (GST) 18% to 25% on all cars above Rs. 40 lacs regardless of engine capacity. Earlier, 25% GST only applied to vehicles with engines above 1400cc; however, any car above 1000cc will now be considered a luxury vehicle in the country.

The decision was taken under pressure from the International Monetary Fund (IMF) during a meeting of the Economic Coordination Committee (ECC) on Tuesday. The Ministry of Finance has also shared their statement on the matter, saying that the proposal was passed yesterday, but did not share any details of the new policy or how it will be implemented.

However, an official notification is yet to be issued by the concerned government department for implementation of the 25% General Sales Tax (GST) on all vehicles above Rs. 40 lacs, which affects the majority of cars in the country except a few options from Pak Suzuki Motor Company (PSMC) and Prince Pearl.

Vehicles to Remain Unaffected

Car Model	Price (PKR)
Prince Pearl	Rs. 1,850,000
Alto VX	Rs. 2,251,000
Alto VXR	Rs. 2,612,000
Alto VXR-AGS	Rs. 2,799,000
Alto VXL-AGS	Rs. 2,935,000
WagonR VXR	Rs. 3,214,000
WagonR VXL	Rs. 3,412,000
WagonR VXL-AGS	Rs. 3,741,000
Cultus VXR	Rs. 3,718,000

Vehicles to Be Affected

The vehicles that were charged 18% GST and will be affected by the new policy include:

Car Model	Price
Suzuki Cultus VXL	Rs. 4,084,000
Suzuki Cultus Auto Gear Shift	Rs. 4,366,000
Suzuki Swift GL Manual	Rs. 4,336,000
Suzuki Swift GL CVT	Rs. 4,654,000
Suzuki Swift GLX CVT	Rs. 5,040,000
Toyota Yaris GLI MT 1.3	Rs. 4,399,000
Toyota Yaris ATIV MT 1.3	Rs. 4,659,000
Toyota Yaris GLI CVT 1.3	Rs. 4,689,000
Toyota Yaris ATIV CVT 1.3	Rs. 4,899,000
Toyota Yaris AERO CVT 1.3	Rs. 5,099,000
Honda City 1.2L M/T	Rs. 4,699,000
Honda City 1.2L CVT	Rs. 4,829,000
Proton Saga 1.3L Ace A/T	Rs. 4,099,000