The Finance Bill 2024, which introduces new tax rates on locally manufactured vehicles among other changes, comes into effect today.
This change marks a shift from a fixed tax rate to a value-based tax system, as outlined in the Finance Bill. Under the new tax regime, the tax on vehicles is no longer a fixed amount but varies according to the vehicle’s value.
These new tax rates are expected to significantly impact the pricing of locally manufactured vehicles, potentially leading to higher costs for consumers.
The government has implemented these changes as part of broader fiscal measures aimed at increasing revenue.
As the Finance Bill 2024 takes effect, it remains to be seen how the market will respond to these new tax rates and the overall impact on the automotive industry in Pakistan.
