Experts estimated a massive hike in prices of cars with capacity of 1400CC and above after imposition of sales tax rate at 25 per cent.
The Federal Board of Revenue (FBR) notified SRO 297(I)/2023 on March 08, 2023, issuing the list of goods subjected to sales tax at 25 per cent sales tax.
The FBR issued the SRO following the approval of federal cabinet. The rates were proposed through the mini budget on February 15, 2023 and become part of the tax laws with the approval of Finance Supplementary Act, 2023 issued on February 23, 2023.
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Analysts at JS Global said further increase in prices expected for 1400CC+ cars:
The FBR issued the details of locally manufactured cars on which sales tax at 25 per cent will be applied.
The revenue body also issued the following details of CBU imported vehicles for imposition of 25 per cent sales tax:
01. 8703.2113, -Mini Vans (CBU)
02. 8703.2119, Other
03. 8703.2193, – 4×4 vehicles (CBU)
04. 8703.2199, Other
05. 8703.2220, Vehicles of a cylinder capacity exceeding 1000cc but not exceeding 1300cc
06. 8703.2240, – Mini vans (CBU)
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07. 8703.2290, other
08. 8703.2313, – Sport utility vehicles
09. 8703.2319, Other
10. 8703.2329, Other
11. 8703.2490, Other
12. 8703.3112, Other
13. 8703.3139, Other
14. 8703.3219, Other
15. 8703.3223, Sport utility vehicles (SUVs 4×4)
16. 8703.3229, Other
17. 8703.3390, Other
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18. 8703.4019, Other
19. 8703.4032, Vehicles of a cylinder capacity exceeding 1000cc but not exceeding 1300cc
20. 8703.4039, Other
21. 8703.4049, Other
22. 8703.4069, Other
23. 8703.5019, Other
24. 8703.5029, Other
25. 8703.5049, Other
26. 8703.5059, Other
27. 8703.5069, Other
28. 8703.6029, Other
29. 8703.6032, – Vehicles of a cylinder capacity exceeding 1,000cc but not exceeding 1,300cc
30. 8703.6039, Other
31. 8703.6059, Other
32. 8703.6069, Other
33. 8703.7019, Other
34. 8703.2195, – Mini vans (CBU)
35. 8703.2260, Sport utility vehicles
36. 8703.2323, Sport utility vehicles (SUVs 4×4)
37. 8703.3129, – Other
38. 8703.3225, All terrain vehicles (4×4)
39. 8703.4029, – Other
40, 8703.4059, Other
41. 8703.5039, Other
42. 8703.6019, Other
43. 8703.6049, Other
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44. 8703.7029, Other
45. 8703.7039, Other
46. 8703.7049, Other
47. 8703.7059, Other
48. 8703.7069, Other
49. 8703.9000, Other
