MG HS Prices Rise Under Revised Withholding Tax Structure

MG HS Prices Rise Under Revised Withholding Tax Structure

MG Motor Pakistan has recently announced significant price adjustments for its MG HS lineup of SUVs in response to changes in Pakistan’s withholding tax structure.

The adjustments come in the wake of the 2024-25 fiscal budget, which introduced a revised method for calculating car withholding tax, shifting from engine capacity to the vehicle’s ex-factory price.

Under the new tax regime, automakers like MG Pakistan are required to revise their pricing strategies accordingly. The impact is particularly noticeable for higher-end models within the MG HS lineup.

For instance, the MG HS Essence now sees a price hike of Rs 161,980, attributing to a 2 percent withholding tax, pushing its price from Rs 8,099,000 to Rs 8,260,980.

The adjustments across the MG HS variants are as follows:

MG HS Essence: Faces a price increase of Rs 161,980, now priced at Rs 8,260,980.

MG HS 2.0L: Experiences a significant rise of Rs 464,950, adjusting its price to Rs 9,763,950.

MG HS Excite: Witnesses a moderate increase of Rs 143,980, with its new price set at Rs 7,342,980.

Impact on DFSK Glory 580 Pro: Adjustments Due to New Tax Structure

Similarly, Regal Automobiles, the official distributor of DFSK vehicles in Pakistan, has announced an increase in the price of the popular DFSK Glory 580 Pro SUV. This adjustment comes in response to recent changes in the withholding tax structure outlined in the 2024-25 Pakistani fiscal budget.

According to the official notification from Regal Automobiles, buyers will now face an additional Rs 135,800 as advance tax when purchasing the DFSK Glory 580 Pro. This increment reflects the newly implemented tax calculation method, which is based on the ex-factory price.

Following the adjustment, the DFSK Glory 580 Pro now carries a price tag of Rs 6,790,000. This new price takes into account the increased advance tax and aligns with the updated tax structure.

These adjustments across both the MG HS lineup and the DFSK Glory 580 Pro illustrate the automotive industry’s adaptation to regulatory changes, ensuring compliance while striving to maintain competitive pricing and customer satisfaction in Pakistan’s dynamic market.