Web Desk: Government’s proposed new auto policy could make several petrol-powered vehicles cheaper by up to Rs1 million, as the government plans to reduce federal excise duty and customs duty to make cars more affordable.
According to policy documents, the proposed tax reductions could significantly lower prices across several engine categories, particularly locally manufactured small cars, petrol SUVs and jeeps.
The initiative follows special directives from Prime Minister Shehbaz Sharif, under which the government has decided to introduce measures to reduce vehicle prices under the new auto policy.
Under the proposed changes, locally manufactured petrol cars with engine capacities of up to 658cc could see a price reduction of Rs375,000.
Consequently, the price of these vehicles could fall from Rs3.22 million to Rs2.845 million.
Similarly, petrol-powered cars with engine capacities of up to 998cc could become Rs440,000 cheaper. Their prices are expected to decline from Rs4.27 million to Rs3.83 million.
The proposed policy also covers petrol-powered SUVs.
According to the document, vehicles with engine capacities of up to 1,496cc could become Rs740,000 cheaper, bringing their prices down from Rs6.06 million to Rs5.32 million.
Meanwhile, the government has proposed a Rs280,000 reduction for 1,498cc petrol SUVs. Their prices could fall from Rs9.44 million to Rs9.16 million.
Larger vehicles could also benefit from the proposed tax relief.
Under the plan, petrol-powered jeeps with engine capacities of up to 1,598cc could see the biggest price reduction of Rs1 million.
As a result, their prices could decline from Rs12.1 million to Rs11.1 million.
The proposed reductions in federal excise and customs duties aim to lower vehicle prices and improve affordability for consumers.
However, the proposed figures are based on policy documents, and the final price adjustments will depend on the government’s implementation of the new auto policy.
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