In the fiscal budget 2024-25, the federal government announced a new withholding tax on locally assembled cars. In his speech, Finance Minister Muhammad Aurangzeb stated that the withholding taxon cars will now be charged on the ex-factory price rather than their engine capacity like earlier.
For a memory jog, we are re-sharing the new percentage of this tax and its impact on car prices with some examples.
We think it will make the new car tax net easier for you to understand. We were waiting for the new car prices following the budget and the implementation of this tax, but it looks like the wait is over as MG Pakistan has revealed the MG HS’s increased price.
MG HS New Cost
The corporation said in a notification that the new Withholding tax announced by the government will have the following effect on prices:
1. MG HS Essence was originally priced at Rs. 8,099,000; however, after deducting 2% withholding tax, the final price increased to Rs. 8,260,980.
2. Comparably, the MG HS 2.0L would cost Rs. 9,763,950 after a new tax of Rs. 4,64,950.
3. Finally, the price of MG HS Excite becomes Rs. 7,342,980 after deducting the withholding tax of Rs. 1,43,980.
Here is a breakdown of the old and new withholding taxes, as well as the tax difference that the customer must pay now, for your better comprehension.
