Govt to Impose New 10% Car Levy

Meanwhile, the new draft auto policy approved by Prime Minister Shehbaz Sharif proposes a new Automotive Development Levy on imported and locally assembled or manufactured vehicles, with cars between 1, 001cc and 2, 000cc facing a 2 percent levy and vehicles above.

Key points

• Vehicles with engine capacities below 1, 000cc would be exempt from the levy.
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• The levy would apply to internal combustion engine (ICE) vehicles under the specified categories.
• The proposed rates cover both imported and locally assembled or manufactured internal combustion engine vehicles.
• Other vehicle categories would additionally be subject to the proposed levy.

Vehicles with engine capacities below 1, 000cc would be exempt from the levy. Two- and three-wheelers and agricultural tractors would additionally carry a zero rate. New Auto Policy Launch Particularly Close.

In practice, the levy would apply to internal combustion engine (ICE) vehicles under the specified categories. While vehicles above 2, 000cc would face a 10 percent rate, the policy sets a 2 percent rate for vehicles classified under PCT 87.03 with engine capacities from 1, 001cc to 2, 000cc.

Other vehicle categories would additionally be subject to the proposed levy. As well as buses and vans, would each carry a 2 percent rate, prime movers, excluding those applied for agriculture, trucks and light commercial vehicles (LCVs). The draft policy's proposed rates are as follows. 2-Wheelers and 3-Wheelers 0%. Cars below 1, 000cc 0%. Cars above 2, 000cc 10%. Prime movers, excluding agricultural tractors 2%. Trucks and LCVs 2%. Buses and Vans 2%.

For context, the levy is part of the draft. Its final implementation details, including the basis on which the rates would be calculated and the effective date, would determine the impact on car rates.

In practice, the proposed rates cover both imported and locally assembled or manufactured internal combustion engine vehicles. Stay Connected with ProPakistani.

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Taken together, the developments around govt to Impose New 10% Car Levy point to a situation that is still moving, and the coming days should bring more clarity.