The automotive landscape in Pakistan set for a potential shake-up as the government considers a significant increase in the withholding tax on new car purchases. This proposed change could affect vehicles across a broad spectrum of engine capacities, from under 850 cc to over 2000 cc, introducing a percentage-based tax rate instead of a fixed amount.
KIA Sportage: A Leader in Its Class
The locally manufactured KIA Sportage remains a standout in its category, known for its sophisticated design, luxurious interior, and advanced features. This robust vehicle equipped with a powerful 2.0-liter gasoline MPI engine, boasting a displacement of 1999 cc. It delivers an impressive 115/6200 kW/rpm and 196/4000 Nm/rpm of torque. The Sportage also features a 6-speed automatic and sportmatic transmission, along with three driving modes—normal, eco, and sport—ensuring a seamless and adaptable driving experience.
Current Prices of KIA Sportage Variants
- Sportage ALPHA: Rs 7,300,000
- Sportage FWD: Rs 7,740,000
- Sportage AWD: Rs 8,470,000
- Sportage Limited Edition: Rs 9,000,000 (ex-factory price remains unchanged)
Proposed Tax Rates on Cars in Pakistan (2024-25 Budget)
| 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 |
These proposed tax rates poised to impact the cost of purchasing new vehicles, potentially altering the buying decisions of many consumers.
Impact on the Automotive Market
If the government’s proposed withholding tax increase implemented, it could significantly impact the overall cost of new cars in Pakistan. For vehicles like the KIA Sportage, which falls within the 1801 to 2000 cc category, buyers could face a 5% tax rate. This would add to the overall cost, making it essential for prospective buyers to consider these additional expenses in their purchasing decisions.
As the government moves forward with these considerations, the automotive market in Pakistan will closely watch for the final decisions and adjustments in pricing strategies by manufacturers like KIA. For now, the KIA Sportage continues to be a preferred choice for its blend of style, performance, and advanced features.
