The federal government’s new car taxation policy, introduced in the Budget 2024-25, aims to boost tax revenue through revised tax rates. These rates range from 0.5% to 12% of the vehicle’s value, depending on the engine size. The Suzuki Cultus, a popular hatchback from the country’s oldest automaker, falls into the 850-1000cc segment.
As a result of the new tax rates, consumers will face higher taxes, which reflect the true market value of their vehicles. However, tax filers have the advantage of adjusting the tax as an advance, potentially mitigating the financial impact.
Key Points:
- Tax Rates: 0.5% to 12% of vehicle value, based on engine size.
- Suzuki Cultus Segment: 850-1000cc.
- Impact: Higher taxes for consumers.
- Benefit for Tax Filers: Ability to adjust the tax as an advance.
This change underscores the government’s effort to align vehicle taxes with market values and increase revenue, while offering some relief for those who file taxes.
Suzuki Cultus Price in Pakistan 2024
| Car Engine | 1000cc |
| Old Tax | Rs20,000 |
| New Tax | Rs38,580 |
| New Proposed Rate | 1percent |
| Tax Diff | Rs18,580 |
| New Car Price | Rs3,876,580 |
Taxes on Cars in Pakistan after Budget 2024-25
| Engine Size (cc) | Tax Rate (%) |
| Up to 850 | 0.5 |
| 851 to 1000 | 1 |
| 1001 to 1300 | 1.5 |
| 1301 to 1600 | 2 |
| 1601 to 1800 | 3 |
| 1801 to 2000 | 5 |
| 2001 to 2500 | 7 |
| 2501 to 3000 | 9 |
| Above 3000 | 12 |
With above mentioned taxes, the government will get higher taxes reflecting the true market value of their vehicles. The impact on consumers is expected to be mitigated for tax filers who can adjust the tax as an advance.
