Budget 2023-24: Cars likely to become expensive

In the budget revealed on Friday for the fiscal year 2023-24, the federal government has announced that the limitation of duties and taxes on the import of old and used 1300cc vehicles made in Asia has been removed.

The announcement came as Finance Minister Ishaq Dar presented the budget before the National Assembly after the federal cabinet green-lighted the budget proposals for the fiscal year 2023-24.

He said that duties and taxes on imports of old and used vehicles up to 1800cc made in Asia were capped in 2005.

The financial czar also said that the limitation of duties and taxes for vehicles above 1300cc has been discontinued.

As a result of this decision, vehicles are likely to become more expensive.

In the new budget, a proposal to double the advance income tax for non-filers on buying a car from abroad has come out.

According to the documents, it is also proposed to levy withholding tax on purchase receipts instead of engine capacity.

A proposal to increase regulatory, additional customs duty on imported vehicles is also under consideration.