The government has doubled the federal excise duty on vehicles. Now car buyers will have to pay an additional amount of Rs 60,000 to Rs 480,000 in the form of federal excise duty when buying a car.
Lahore Car Dealers Federation rejects increase
Inflation poses another challenge for car buyers.
Up to 60,000 federal excise duty will be levied on 1000 cc vehicles. Earlier, zero percent FED was levied on 1000 cc vehicles. Federal duty on vehicles over 1300 cc has been increased from 2.5 percent One hundred and twenty thousand federal duty will be levied for the purchase of 1300 cc car.
Similarly, the federal duty on vehicles larger than 2000 cc has been increased from 5% to 10%. For purchase of 2,000 cc vehicle, federal duty of Rs. 480,000 will be levied. Lahore Car Dealers Federation has rejected the increase in federal excise duty.
President Lahore Car Dealers Federation Shahzada Saleem has said that the increase in federal excise duty should be withdrawn immediately.
35% car dealers have closed down due to inflation. Car business is already stalled. Increasing excise duty will further reduce business.