Pak Suzuki, responding to the 25 percent sales tax on motor vehicles, has adjusted the pricing of the Suzuki Swift GLX (CVT) model while keeping other Swift variants steady.
The price adjustment impacts the Swift GLX (CVT) model, which now stands at PKR 5,429,000, marking an increase of PKR 304,000 from its previous price.
The Federal Board of Revenue (FBR) announced the 25% sales tax through SRO 370(I)/2024 on March 8, 2024, amending the earlier SRO 297(I)/2023. This decision aims to enhance revenue generation by imposing higher taxes on specific motor vehicle categories.
Traditionally, Pakistan’s standard sales tax rate was 18 percent, but the government’s revenue-driven strategy has led to a surge in tax rates, particularly affecting certain vehicle categories. The increased tax rate will be applicable to:
Locally manufactured or assembled vehicles with an engine capacity exceeding 1400CC (PCT Code 87.03).
Locally manufactured or assembled vehicles with an invoice price (excluding sales tax) surpassing Rs 4 million (PCT 87.03).
Locally manufactured or assembled double cabin (4X4) pick-up vehicles (PCT 87.04).
The Economic Coordination Committee (ECC) greenlit the GST increase to 25% on locally produced vehicles with an engine capacity of 1,400cc and above.
This adjustment in Suzuki Swift GLX (CVT) pricing reflects the industry’s response to the changing tax landscape, impacting both manufacturers and consumers.
Pak Suzuki’s decision to adjust the pricing of the Suzuki Swift GLX (CVT) model reflects the industry’s response to the changing tax landscape. Such adjustments have significant implications for both manufacturers and consumers, as higher taxes could potentially dampen consumer demand while impacting manufacturers’ profit margins.
As the automotive industry grapples with these new tax regulations, stakeholders will need to navigate through the evolving landscape, adapting their strategies to ensure competitiveness and sustainability in the market.
