Car Prices Out of Reach for Citizens Due to Increased Taxes; Traders Demand Reduction in GST and Transfer Fees

Karachi: The year 2024 has proven challenging for the automobile industry, with increasing taxes making cars unaffordable for many citizens. The industry has been adversely impacted by the rise in custom duties, withholding tax, and capital value tax, which have not seen any reduction, pushing the automobile sector into a crisis.
According to Kashif Timor, General Secretary of the Motor Car Association, the increased taxes and declining purchasing power are creating significant challenges for the industry. He added that the market has been continuously declining since last year.
With car prices soaring, potential buyers are finding themselves in a difficult position. Cars that were previously available for 2.5 million rupees are now being sold for as much as 4.7 million rupees.
Traders have called for a reduction in GST, as well as cuts in the transfer fee and token tax for vehicles. Motor car dealers have appealed to the government to reduce the heavy taxes on automobiles to help revitalize the industry.