Pakistan’s new auto policy to be finalised after ‘consultation’ with IMF

Suzuki Alto to Get Cheaper? Pakistan Proposes 5.5% Sales Tax Cut on Upto 800cc Cars

The federal government of Pakistan is discussing an important tax change with the International Monetary Fund (IMF). It wants to reduce the sales tax on locally made cars with engines up to 800cc from 18% to 12.5%. This means a 5.5 percentage point cut. If the proposal is approved, popular entry-level cars like the Suzuki Alto could become more affordable. Many middle-class families in Pakistan dream of buying their first car, and lower prices w…

Pakistan’s new auto policy to be finalised after ‘consultation’ with IMF

Pakistan’s upcoming auto policy will be finalised after consultations with the International Monetary Fund (IMF), sources said. Sources said the IMF has previously opposed reducing the sales tax on 800cc vehicles to 12.5%, and discussions with the lender will also be held regarding tax incentives proposed under the new policy. Prime Minister Shehbaz Sharif has directed authorities to make the auto policy more investor-friendly, with the aim of i…