This article explores the potential impact of the recently proposed Federal Budget 2024-25 on the prices of Honda motorcycles in Pakistan, including popular models like the CD 70, CG 125, CD 70 Dream, and Pridor.
Rising Import Duties: A Cause for Concern
The budget proposes a series of tax impositions on imported goods, including raw materials like steel and spare parts. This can lead to a price increase for vehicles manufactured or assembled in Pakistan, including Honda motorcycles.
The government aims to boost domestic production by making imported materials less attractive financially. However, this may have an unintended consequence of pushing up the overall cost of motorcycles for consumers.
Increased Taxes on Luxury Vehicles
The budget also proposes ending import tax exemptions on luxury vehicles exceeding $50,000. This will translate to higher taxes and duties for these high-end automobiles.
While this may not directly affect the price of Honda motorcycles, it indicates a broader trend of increased taxation on imported goods. This trend could potentially extend to other vehicle categories in the future.
Balancing Tax Collection and Affordability
The proposed budget targets a tax collection goal of Rs. 12,970 billion. The strategy involves raising income and sales taxes while broadening the tax net and increasing import duties on luxury items.
While this strategy aims to improve government revenue, the increase in sales tax and import duties on raw materials can directly translate to a price hike for Honda CD 70 and other motorcycles.
Honda CD 70: Still the King, But for How Long?
Despite currency fluctuations, the Honda CD 70 remains the best-selling motorcycle in Pakistan, surpassing many local competitors. However, rising prices due to potential tax implications could pose affordability challenges for potential buyers.
This situation might force budget-conscious consumers to explore alternative motorcycles or delay their purchase altogether.
Current Honda CD 70 price in Pakistan
In July 2024, the current price of the Honda CD 70 stands at Rs 157,900. However, the price can be affected after the approval of Federal Budget 2024-25 proposals in the coming month.
| Bike models | Prices |
| Honda CD70 | Rs 157,900 |
| Honda CD70 Dream | Rs 168,900 |
