In a significant development that could impact car buyers in Pakistan, the federal government has proposed an increase in withholding tax on the purchase of new cars in the 2024-2025 budget. This move set to affect vehicles with engine capacities ranging from 850cc to 2000cc, including the popular Toyota Yaris.
Key Highlights:
- New Tax Proposal: The proposed budget includes a withholding tax increase for cars with engines between 850cc and 2000cc.
- Impact on Toyota Yaris: Toyota Yaris, a favorite among Pakistani car enthusiasts for its durability, fuel efficiency, and comfortable ride, will see a price hike if the new tax rates are implemented.
- Current Prices: The Toyota Yaris currently priced between PKR 4,479,000 and PKR 6,319,000, depending on the variant.
Detailed Price Impact:
If the proposed tax increase of 2% applied, the prices of Toyota Yaris models will rise as follows:
- Basic Variant: Currently priced at PKR 4,479,000, the basic variant will see an increase of PKR 39,580, bringing the new price to approximately PKR 4,518,580.
- Top Variant: The top variant, currently priced at PKR 6,319,000, will experience an increase of PKR 76,380, making the new price around PKR 6,395,380.
Market Implications:
This tax hike comes at a time when the auto sector is already facing multiple challenges. The increased prices could affect the sales of Toyota Yaris, making it more expensive compared to other Japanese car brands in the market.
Why It Matters:
The Toyota Yaris known for its strong build, excellent fuel efficiency, and smooth driving experience. Any increase in its price could influence buyer decisions, potentially shifting demand to other models or brands that offer more competitive pricing.
Car buyers planning to purchase a Toyota Yaris should be aware of the impending price increases due to the proposed tax changes. Staying informed about these updates can help in making better purchasing decisions in the evolving market.
