We previously mentioned the upcoming increase in car prices due to the government’s implementation of a 25% GST on cars priced above Rs. 40 lacs. An update is now available – Pakistan Suzuki Motor Company (PSMC) has taken the lead in passing on the GST impact to its customers, making it the first company to do so in the market.
The Price Hike
PSMC has raised the price of Swift GLX CVT by Rs. 304,000, now priced at Rs. 5,429,000 from the previous Rs. 5,125,000. Other variants’ prices remain unchanged by Pak Suzuki.
Impact of GST
The 25% GST applies to cars with 1400cc engine capacity and above. A crucial aspect of this regulation is that cars exceeding Rs. 40 lacs will now bear a 25% sales tax, excluding it from the car’s price.
According to a Suzuki official, despite some Cultus and Swift variants priced above Rs. 4 million, only Swift GLX is affected by this new tax when excluding sales tax.
The new GST will be enforced on:
- Locally manufactured vehicles with 1400cc and higher engine capacity.
- Locally manufactured vehicles with an invoice price over Rs. 4 million (excluding sales tax).
- Locally manufactured double cabin (4x) pick-up vehicles.
Potential models like Honda City, Toyota Yaris, and Proton Saga might also be impacted by the new GST. Official announcements from the respective companies will confirm this. Share your thoughts on the government’s new policy and price increases in the comments section.
