In the wake of the government’s recent decision to impose a 25% General Sales Tax (GST) on vehicles priced above Rs. 40 lacs, Pakistan Suzuki Motor Company (PSMC) has become the first to react. The company has decided to adjust its prices accordingly, passing on the impact of the tax increase to its customers.
Suzuki Swift Price Adjustment Details
PSMC has specifically raised the price of the Swift GLX CVT by Rs. 304,000. The new price now stands at Rs. 5,429,000, up from the previous Rs. 5,125,000. However, the prices of other variants remain unchanged for now.
The 25% GST is already applicable to cars with an engine capacity of 1400cc and above. But the recent amendment has extended this to all cars priced above Rs. 40 lacs, excluding the sales tax from the car’s price.
A Suzuki official clarified that among the variants of Cultus and Swift priced over Rs. 4 million, only the Swift GLX falls under this new tax bracket when excluding sales tax.
GST Implementation Scope
The 25% GST will now be levied on:
- Locally manufactured or assembled vehicles with an engine capacity of 1400cc and above.
- Locally manufactured or assembled vehicles if the invoice price (excluding sales tax) exceeds Rs. 4 million.
- Locally manufactured or assembled double cabin (4x) pick-up vehicles.
Other potential models that might be affected by this new GST rule include Honda City, Toyota Yaris, and Proton Saga. However, official confirmations from these
 on vehicles priced above Rs. 40 lacs, Pakistan Suzuki Motor Company (PSMC) has become the first to react. The company has decided to adjust its prices accordingly, passing on the impact of the tax increase to its customers.){kind=link}