The federal government has announced new vehicle taxes in the latest budget, leading to significant price increases for locally manufactured cars. The new withholding tax rates have affected various vehicle categories.
For cars up to 850 cc, including the Alto VXR, the tax is now 0.50% of the price, amounting to Rs 12,500, up from the previous Rs 10,000. Vehicles between 851 cc and 1,000 cc will be taxed at 1% of the price, resulting in Rs 38,580 compared to the earlier Rs 20,000.
Cars in the 1001 cc to 1300 cc range will see a 1.50% tax, equating to Rs 56,985, up from Rs 25,000. For vehicles from 1301 cc to 1600 cc, the tax is 2% of the price, now Rs 81,585, an increase from Rs 50,000. This means the Honda City will cost an additional Rs 31,000.
For vehicles between 1601 cc and 1800 cc, the tax has risen to 3%, or Rs 225,270, compared to the previous Rs 150,000, making the Toyota Grandi Rs 75,000 more expensive. Cars from 1801 cc to 2000 cc now face a tax increase to Rs 100,720, while vehicles over 3000 cc have seen their tax rise to Rs 1,139,880.
Additionally, MG has adjusted its prices under the new tax regime. The price of the MGHS Essence, previously Rs 8,499,000, has now increased to Rs 9,800,000.
These tax hikes are expected to significantly impact the automobile market, raising vehicle costs for consumers across various segments.
