Toyota Yaris prices reduced by Rs 133,000

ISLAMABAD: Indus Motor Company, the maker of Toyota cars in Pakistan, has announced a price reduction for its Yaris sedan lineup, with the decrease ranging from Rs73,000 to Rs133,000.

Following this adjustment, Yaris’ 1.3 MT LO, 1.3 CVT LO, and 1.3 MT Hi variants will be priced at Rs4.326 million, Rs4.616 million, and Rs4.586 million, respectively, reflecting a Rs73,000 reduction for each model.

The price of the Yaris CVT Hi has been reduced by Rs133,000 in Pakistan, bringing its new price to Rs4.766 million.

According to an industry source quoted by Business Recorder, Indus Motor Company implemented these price cuts to avoid the recently increased 25 percent sales tax on automobiles priced above Rs4 million.

As a result of the price reduction, Toyota Yaris cars will now fall under the 18% sales tax regime.

The government’s decision to raise the sales tax on vehicles – with engine sizes of 1,400cc and above, as well as those invoiced at above Rs4 million – from 18 percent to 25 percent has affected the auto industry.

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Initially, the tax increase was intended only for cars with engine sizes of 1400cc and above, while all SUVs, including those below 1400cc, were to remain under the 18 percent tax rate.

However, SUV manufacturers producing vehicles below 1400cc were unsuccessful in avoiding the tax increase and apparently pushed for the inclusion of a Rs4 million price cap. This cap resulted in some Toyota, Honda, and Suzuki models being subject to the increased sales tax regime, added the source.

Pakistan’s auto sector has faced challenges due to high-interest rates and increased production costs, leading to higher car prices and a decline in sales.