Budget 2023-24: Cars prices likely to increase

ISLAMABAD: The federal government on Friday proposed withdrawing the capping of fixed duties and taxes on the import of old and used cars of Asian makes above 1300CC in budget 2023-24, ARY News reported.

The announce came as Minister for Finance and Revenue Ishaq Dar presented the federal budget for fiscal year (FY) 2023-24 with a total outlay of Rs14.5 trillion during a National Assembly (NA) session.

During the speech, Ishaq Dar said that duties and taxes on imports of old and used vehicles up to 1800cc made in Asia were capped in 2005.

The minister announced that the limitation of duties and taxes for vehicles above 1300cc has been withdrawn. As a result, cars are likely to become more expensive.

Pakistan’s economy is in turmoil amid financial woes and the delay in an agreement with the International Monetary Fund (IMF) that would release much-needed funding crucial to avoid the risk of default.

The budget is being keenly watched as the government is caught between a painful fiscal adjustment reforms agenda set by the IMF, and to make room for any relief to the people ahead of a national election scheduled in early November.