Islamabad, February 12, 2025 – In a positive development for car buyers, Federal Board of Revenue (FBR) Chairman has announced policy changes aimed at reducing car prices for budget-conscious consumers. This move comes as the government pushes for greater accessibility to vehicles while ensuring compliance with tax regulations.
Major Announcements for the Auto Industry
The FBR’s new car pricing policy will affect:
- Customs Duties – A reduction in import duties on small-engine vehicles (660cc – 1300cc).
- Tax Adjustments – Reduction in Federal Excise Duty (FED) and General Sales Tax (GST) on locally manufactured cars.
- Incentives for Hybrid & Electric Vehicles – Duty concessions for hybrid and electric vehicles (EVs) to promote eco-friendly transportation.
Expected Price Reductions for Popular Car Models
Under the new policies, the following vehicles are expected to become more affordable:
- Suzuki Alto (660cc) – Estimated price drop by Rs. 100,000 – 150,000.
- Toyota Yaris (1300cc) – Expected reduction of Rs. 200,000.
- Honda City (1500cc) – Likely to become Rs. 250,000 cheaper.
- Kia Picanto & Hyundai Santro – Price cuts ranging from Rs. 150,000 to 200,000.
Impact on the Automobile Market
These measures are likely to:
- Boost Car Sales – Lower prices make cars more accessible to middle-income buyers.
- Revive Local Manufacturing – Domestic carmakers benefit from increased demand.
- Encourage EV Adoption – Lower duties on electric and hybrid vehicles promote eco-friendly transportation.
The auto industry, buyers, and financial analysts are welcoming the initiative, expecting a positive shift in consumer demand and market growth.
