Honda Vezel Price in Pakistan Set to Rise As Custom Duty Increased

Cars in Pakistan, such as the Honda Vezel, are becoming more expensive due to high import duties, compounded by additional taxes imposed by the current government. These measures often result in doubling the original prices of imported vehicles.

With regulatory duties increased by up to 100% on cars with engines over 1800cc, the automotive market is facing significant challenges. In the Budget 2024-25 announcement, the Pakistani government introduced amendments affecting imported Hybrid Electric Vehicles (HEVs). Previously, a 50% exemption on customs duties was in place for all imported HEVs.

However, under recent changes, Pakistani importers of HEVs will now be subject to the full 100% duty without any previously available concessions or discounts.

Honda Vezel Price Update in Pakistan

According to the Federal Board of Revenue (FBR), hybrid electric vehicles (HEVs) with engine capacities up to 1800cc will benefit from a 50% exemption on duties and taxes, while those ranging from 1800cc to 2500cc will receive a 25% exemption.

Furthermore, the Minister has proposed eliminating tax exemptions for electric vehicles priced above $50,000, impacting purchases of high-end EVs. Buyers of these vehicles will now be required to pay applicable taxes and duties.

Regarding local assembly, the current system imposes Advance Tax based on engine capacity for cars up to 2000cc. However, due to significant price hikes in the automotive sector, the government plans to transition to a pricing-based taxation system to enhance revenue potential.

These policy adjustments mark substantial changes introduced by the government for the automotive industry. Further specifics and clarifications on these tax reforms are anticipated as the government refines its policies.