Budget 2023-24: Pakistan plans to hike prices of cars

In the upcoming fiscal year 2023-24 budget, the federal government is considering imposing a withholding tax (WHT) on locally built vehicles based on invoice price rather than engine capacity.

On June 9, the Federal Finance Minister is due to present the budget for the upcoming fiscal year, amidst an economic crisis that has caused inflation in the country.

In the meantime, the Pakistan Automotive Manufacturers Association (PAMA) has urged the government against imposing WHT based on invoice pricing.

PAMA stated in a letter to the Chairman of the Federal Board of Revenue (FBR) that changing the foundation of WHT will harm local vehicle sales by increasing retail costs.

PAMA has also requested that the present engine-based WHT on automobiles be reduced. It stated that the auto industry has been struggling since the government enforced import limits due to a lack of funds.

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