- Car prices jacked up to Rs1 million.
- Industry affected by hike in sales tax.
- New prices come into effect from March 14.
KARACHI: Honda Atlas Cars Pakistan Limited (HACPL) once again jacked up its car prices following a hike in the sales tax on 1400cc and above vehicles, The News reported Wednesday.
Recently, the government raised the sales tax to a whopping 25% on numerous items terming them as “luxury” goods to fetch an additional Rs11 billion in revenue.
The auto industry, which had been already struggling with a massive devaluation of the local currency in a year and inventory shortages pushed by import curbs, was impacted by the decision.
“Keeping in view further increase in exchange rate PKR/USD and increase in the rate of Sales Tax from 18% to 25% on 1400cc and above CKD [completely knocked down] vehicles, HACPL has to increase current prices,” the automaker said in a letter to its dealers.
With the increase in prices, Civic 1.5L M CVT, Civic 1.5L Oriel M CVT, and Civic Rs 1.5L LL CVT will cost Rs8.6 million, Rs8.95 million, and Rs10.2 million respectively.
The new prices would come into effect from March 14, the company informed.
The rate of the low-end Honda City MT 1.2L rose Rs220,000 to Rs4.799 million, while the 1.2L City CVT became costlier by Rs200,000 to Rs4.929 million.
Meanwhile, after an increase of Rs530,000, the 1.5L City CVT to be sold at Rs5.549 million.
The new price of BRV CVT S is Rs6.529 million, with a jump of Rs580,000. The rate of HRV VTI S has been increased by Rs800,000 and the new price is Rs8.199 million.
HACPL has announced a production break till the end of March, blaming the current economic situation, issues in the opening of letters of credit, and raw material shortages.
In recent months, almost all auto companies in Pakistan have raised their vehicles’ prices multiple times, as they struggle to cope with an economic downturn in the country that has forced the incumbent government to take some unprecedented decisions.
Last week, Indus Motor Company (IMC) and Lucky Motor Company also jacked up the prices of their vehicles.
“We are compelled to pass on some impact to the market,” IMC stated in a letter to the dealers, adding that the government had enhanced the sales tax on all CKD vehicles with an engine capacity of 1,400cc and above (with exception of IMV-I single cabin).
The new price of Corolla 1.6 MT is over Rs6.1 million, while Corolla 1.8 CVT SR Black would cost more than Rs7.8 million, with a rise of Rs593,000 and Rs760,000 respectively.
The most expensive Toyota vehicle would be Fortuner Diesel Legender at a price of over Rs20 million.
KIA’s Stonic EX and EX+ now cost Rs5.2 million and Rs5.73 million, respectively.
The revised price of Sportage Alpha, FWD and AWD are Rs7.05 million, Rs7.79 million and Rs8.39 million, respectively.