rewrite this content with different wording and keep HTML tags

In the Fiscal budget 2024-25, the federal government announced a new withholding tax on locally assembled cars. In his speech, Finance Minister Muhammad Aurangzeb stated that the withholding tax on cars will now be charged on the ex-factory price rather than their engine capacity like earlier.

For a memory jog, we are re-sharing the new percentage of this tax and its impact on car prices with some examples.

We hope that it will help you understand the new tax net on cars. After the budget, we were waiting for the new car prices after the imposition of this tax, and the wait is apparently over, as MG Pakistan has announced the increased price of MG HS.

MG HS New Price

In a notification, the company mentioned that the government has announced the new Withholding tax, and this is how it is going to impact the prices:

  • The price of MG HS Essence was Rs. 8,099,000, and with a 2% Withholding Tax, the new amount of tax is Rs.161,980, bringing the price to Rs. 8,260,980.
  • Similarly, a new tax on MG HS 2.0L is Rs. 4,64,950, meaning the price would be Rs. 9,763,950.
  • Last but not least, the withholding tax on MG HS Excite is Rs. 1,43,980, taking the price to Rs. 7,342,980.

For a better understanding, here is the breakdown of the previous and new withholding taxes, along with the tax difference, which the consumer has to pay now. 

Important Note: The freight charges are not included in the revised prices, which means that the above-mentioned rates could be slightly different. You can confirm the prices by visiting the company’s dealership.  Furthermore, this tax rate and prices are for filers. Hopefully, this blog will help you understand the new tax net on all variants of MG HS. 

What do you think about a new tax on locally assembled cars? Please tell us in the comments section.