The upcoming budget for 2024-25 is expected to bring significant changes to the pricing of used vehicles in Pakistan, with a proposed increase in regulatory duty.
Sources indicate a 30% rise in regulatory duty on vehicles larger than 1800cc, potentially leading to higher costs for imported used vehicles.
According to reports, there is a proposal to increase the regulatory duty on old vehicles, which could further contribute to the expected price hike.
Imported used vehicles, particularly those with engine capacities larger than 1800cc, are likely to face the brunt of these changes, with the rate of duty possibly escalating from 70% to 100%. Additionally, there is a proposal to impose a 15% duty on used vehicles up to 1800cc.
However, there is a silver lining for buyers of new and old hybrid vehicles with engine capacities up to 1800cc, as it is suggested that they will continue to enjoy zero duty, providing some relief amidst the anticipated price increases.
It's worth noting that last year saw a significant surge in vehicle imports, up by 255%, largely attributed to the reduction in regulatory duty. The proposed adjustments in regulatory duty aim to curb excessive imports and promote local manufacturing.
