The cost of owning a new Suzuki Swift has risen due to the Federal Board of Revenue’s (FBR) revised withholding tax regime.
This updated tax structure bases the tax on vehicle value instead of engine capacity, directly impacting Pakistan’s popular car, the Suzuki Swift.
Details of the New Withholding Tax Regime
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
Price Increase for Suzuki Swift Buyers in Pakistan
Under the new withholding tax regime, Suzuki Swift buyers will experience the following price increases:
Swift GL: Priced at Rs 4,336,000 (ex-factory), buyers will now pay an additional Rs 65,040 for filers and Rs 195,120 for non-filers.
Swift GL (CVT): Priced at Rs 4,560,000 (ex-factory), buyers will now pay an additional Rs 68,400 for filers and Rs 205,200 for non-filers.
Swift GLX (CVT): Priced at Rs 4,719,000 (ex-factory), buyers will now pay an additional Rs 70,785 for filers and Rs 212,355 for non-filers.
Swift GLX (CVT) Two Tone: Priced at Rs 4,719,000 (ex-factory), buyers will now pay an additional Rs 70,785 for filers and Rs 212,355 for non-filers.
Impact on the Automotive Market
This tax revision is expected to significantly impact the automotive market, particularly popular cars like the Suzuki Swift. 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.