Recent adjustments to Pakistan’s withholding tax structure for automobiles have triggered price increases for several popular SUVs, including the MG HS and DFSK Glory 580 Pro.
Shifting Tax Landscape
The Pakistani government’s fiscal budget for 2024-25 has implemented a revised withholding tax system for car purchases. This new policy calculates the tax based on the ex-factory price of the vehicle, replacing the previous method that relied on engine capacity. This significant change necessitates adjustments from car manufacturers, leading to price hikes for consumers.
MG HS Price Revisions
MG Pakistan has announced revised pricing for all MG HS variants. The MG HS Essence, previously offered at PKR 8,099,000, now carries a price tag of PKR 8,260,980 due to the newly imposed PKR 161,980 withholding tax.
Similarly, the MG HS 2.0L experiences a more substantial increase to PKR 9,763,950 with the addition of a PKR 4,64,950 tax. The most affordable MG HS Excite variant now starts at PKR 7,342,980, reflecting an additional tax burden of PKR 1,43,980.
DFSK Glory 580 Pro Impacted
Regal Automobiles, the authorized distributor for DFSK vehicles in Pakistan, has also announced a price increase for the DFSK Glory 580 Pro.
Under the new tax calculation method, buyers will now face an additional PKR 135,800 in advance tax. Consequently, the revised price for the DFSK Glory 580 Pro stands at PKR 6,790,000.
Market Transparency for Informed Decisions
With these tax changes impacting car prices across Pakistan, prospective car buyers are strongly advised to conduct thorough research and compare pricing across different manufacturers before finalizing a purchase decision.
This increased market transparency is crucial for consumers to make informed choices and navigate the shifting landscape of car prices effectively.
The recent withholding tax revision has undoubtedly added a layer of complexity for both car manufacturers and buyers. However, this move by the Pakistani government aims to streamline tax collection and ensure a more equitable system based on vehicle value rather than engine capacity.
While the immediate effect is a noticeable increase in car prices, particularly for popular models like the MG HS and DFSK Glory 580 Pro, the long-term implications could lead to a more balanced and fair automotive market.
The withholding tax adjustments in Pakistan’s 2024-25 fiscal budget have led to significant price increases for several SUVs. MG HS variants and the DFSK Glory 580 Pro have seen substantial hikes, prompting consumers to be more vigilant and informed in their purchasing decisions.
