Automaker raises car prices following recent tax hike

WEB DESK: In response to the recent tax increase imposed by the government on locally manufactured or assembled vehicles, Pak Suzuki Motor Company Limited has announced a substantial hike in the price of its Swift GLX CVT model.

The price adjustment, effective March 8, 2024, sees an increase of Rs304,000, as indicated in the manufacturer’s official notice.

Attributing the surge in car prices to the heightened taxes set by the government, Pak Suzuki’s decision reflects the adjustments necessitated by the Ministry of Finance and Revenue.

The ministry issued a notification on March 8, detailing a surge in sales tax from 18 per cent to 25 per cent on vehicles falling under Chapter 87.03 of the Pakistan Customs Tariffs, with an invoice price (excluding sales tax) exceeding Rs4 million.

Consequently, the sale price of the Swift GLX CVT model has been adjusted from Rs5.125 million to Rs5.429 million to comply with the new tax regulations.

This marks the second price increase by Pak Suzuki within a span of 10 days, with the company having previously raised the prices of the Suzuki Alto, Suzuki Cultus, and Suzuki Swift on March 1, 2024.

The swift succession of these adjustments underscores the challenges faced by the automotive industry in adapting to evolving government regulations and taxation policies.

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