If you think purchasing a Civic or Corolla is expensive, think again!
In the Finance Supplementary (Second Amendment) Bill, 2019, the government had proposed a 10% increase in federal excise duty for locally-manufactured motor vehicles with an engine capacity of 1800cc and above.
This means that both models now have a price increase and now Rs2.8 million. Both websites have confirmed the new change in price.
On the other hand, the government has abolished a restriction that barred non-filers from buying new vehicles above 1300cc engine capacity. This means that all Civics and Grande lovers will have to pay more.
According to Samaa, the amendments related to the auto sector proved to be a positive trigger for local automakers. The stock of all three major automakers, Pak Suzuki Motors Company Limited, Indus Motors (the makers of the Corolla) and Honda Cars, hit their upper limit after rising 5% from their opening price with more than 698,000 shares changing hands on Thursday.
The removal of the non-filer ban will be majorly positive for Indus Motors, since all its variants [except the Corolla Gli/Xli] are above 1,300cc – Intermarket Securities (Report)
Cars had already become expensive comparatively as prices increased by 25% in the last 12 months due to the depreciation of the Rupee against the Dollar. About 70% of their parts are imported and paid for in dollars.
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