The cost of owning a new Haval Jolion has risen following the Federal Board of Revenue’s (FBR) revised withholding tax regime.
Effective July 1, 2024, this new tax structure bases the tax on vehicle value rather than engine capacity, directly impacting Pakistan’s popular SUV market.
New Withholding Tax Regime Details
The Finance Act of 2024 introduced this regime to streamline tax collection by aligning levies with vehicle value, a significant shift from the previous engine capacity-based system.
The revised withholding tax rates for new motor vehicles are as follows:
Up to 850 cc: 0.5% of the vehicle’s value
851 cc to 1000 cc: 1% of the vehicle’s value
1001 cc to 1300 cc: 1.5% of the vehicle’s value
1301 cc to 1600 cc: 2% of the vehicle’s value
1601 cc to 1800 cc: 3% of the vehicle’s value
1801 cc to 2000 cc: 5% of the vehicle’s value
2001 cc to 2500 cc: 7% of the vehicle’s value
2501 cc to 3000 cc: 9% of the vehicle’s value
Above 3000 cc: 12% of the vehicle’s value
Increase in Haval Jolion Price in Pakistan
For Haval Jolion buyers, the price increase under the new withholding tax regime is detailed below:
Haval Jolion: Priced at Rs 8,028,500 (ex-factory), buyers will now pay an additional Rs 160,570 as withholding tax.
Impact on the Automotive Market
This tax revision is expected to significantly impact the automotive market, particularly for expensive SUVs like the Haval Jolion, which is popular among Pakistani consumers.
The increased cost due to the withholding tax could influence purchasing decisions, potentially altering market dynamics.
For potential buyers and current car owners, understanding these changes is crucial for making informed purchasing decisions.
The FBR’s shift to aligning taxes with vehicle values rather than engine capacities marks a significant policy change, reflecting broader trends in automotive taxation and revenue collection strategies.