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Honda Civic and Toyota Grande to cost Rs280,000 more as the govt increases duties

It also did away with the restriction on non-filers buying 1300cc cars

SAMAA | - Posted: Mar 7, 2019 | Last Updated: 2 years ago
Posted: Mar 7, 2019 | Last Updated: 2 years ago
Honda Civic and Toyota Grande to cost Rs280,000 more as the govt increases duties

Buying a Honda Civic or Toyota Grande will now cost you Rs280,000 more because the government has increased duties on these cars in its supplementary budget announced on Wednesday.

In the Finance Supplementary (Second Amendment) Bill, 2019, the government had proposed a 10% increase in federal excise duty for locally-manufactured motor vehicles with an engine capacity of 1800cc and above. However, it has now revised the proposed engine capacity to 1700cc variants and above.

This means that the Honda Civic 1799cc variant and Toyota Altis Grande 1798cc variant will now fall under the purview of this amendment and see a price increase of 10%. According the company websites, the variants of both cars are selling for Rs2.8 million.

While lovers of Civics and Grandes will have to pay more, the supplementary bill comes with another amendment that will allow non-filers to buy locally-manufactured cars irrespective of their engine capacity. This is because the government has abolished a restriction that barred non-filers from buying new vehicles above 1300cc engine capacity.

Related: NA approves second mini-budget amid protests

The amendments related to the auto sector proved to be a positive trigger for local automakers. The stock of all three major automakers, Pak Suzuki Motors Company Limited, Indus Motors (the makers of the Corolla) and Honda Cars, hit their upper limit after rising 5% from their opening price with more than 698,000 shares changing hands on Thursday.

“The removal of the non-filer ban will be majorly positive for Indus Motors, since all its variants [except the Corolla Gli/Xli] are above 1,300cc,” Intermarket Securities said in a report, adding that more than 30% of IMC’s customers are non-filers. In the case of Honda, non-filers constitute 10% of its customer base.

Local automakers have already increased prices by 25% in the last 12 months due to depreciation of the rupee against the dollar. About 70% of their parts are imported and paid for in dollars.

Since coming into power, the PTI government has been facing a double challenge of a trade deficit and a budget deficit. This is because for every dollar earned, the country spends two. On the other hand, government’s expenses far exceed its revenue, creating a loss of over Rs2 trillion a year.

Related: Hyundai Nishat unveils the Santa Fe and Grand Starex in Pakistan

When it comes to auto sector, the government has made several amendments, including the imposition of restriction on non-filers and increasing taxes (some reversed later), to increasing its tax revenue and bringing more people under the tax net.

In the latest amendment, the government has increased the federal excise duty on imported luxury cars above 1800cc from the existing 20% (imposed in January) to 25% in supplementary budget unveiled on Wednesday. The duty on imported vehicles exceeding 3000cc engine capacity has been raised to 30%.

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  1. Jamshed Rabadi  March 7, 2019 4:24 pm/ Reply

    The finance minister should take into consideration the senior citizens.

    Retired senior citizens should not be taxed additionally.

    • Shoaib  March 8, 2019 6:38 am/ Reply

      Senior citizens should not risk thier life by driving such big cars. they should be goven concessions in small cars of local as well as imported.

  2. Jamshed zafar  March 7, 2019 6:02 pm/ Reply

    Ik should consider senior citizens

  3. Abdullah kamal  March 7, 2019 11:42 pm/ Reply

    How come they increase money on those car which people already bought and giving instalments from year before this new amendment. This is not right !

  4. Anonymous  March 8, 2019 12:22 am/ Reply

    Will the increase in tax rate will have any effect on market price of 2017 / 18 models of civic as well?

  5. Salman  March 8, 2019 2:56 am/ Reply

    This is too much price increase if they can’t run this country plz allow others but stop pressing normal people …after every 10 days a stupid budget hits us like a bullet…..I am really fed up

  6. Ali  March 8, 2019 8:23 am/ Reply

    I guess a “retired or senior ” citizen who can spend 30 k on a luxury car can also afford an additional 3k.

  7. Sadaf  March 8, 2019 8:30 am/ Reply

    Govt should stick to their policy of not allowing non filers to purchase cars above 1300 cc.mostly these are businessmen who dont file tax returns and others with illegal means
    These steps although wont benefit in short term but in long term bringing people in tax net is only way of running things smoothly.

  8. Gulzeb  March 8, 2019 11:34 am/ Reply

    I believe that if someone is paying already a massive amount and I am pretty sure that only elite class can buy these cars,they should not have much problem to pay bit extra….middle class or lower middle classes can’t afford these cares anyway….I would say its a good decision for the country….

  9. Mumtaz Ali  March 8, 2019 5:14 pm/ Reply

    Imran Khan Are increasing taxes day by day on everything, but still we are not seeing any changes in country, yes one change are happining that poor people getting much poor then now they are. So Please we do not need tabdeeli like this. Keep this at you. Thanks

  10. Afzal Qazi  March 8, 2019 8:39 pm/ Reply

    Welcome to new Pakistan

  11. Nadeem  March 9, 2019 2:07 pm/ Reply

    This is not new pakistan for which people of old pakistan have voted.

  12. Kashif  March 9, 2019 4:13 pm/ Reply

    We voted pti this time but they are proving total failure to run country by increasing taxes on poor people like ele. Gas bills. Petroleum and daily food items. So fuck this type of tabdeeli.

  13. M.  March 9, 2019 4:20 pm/ Reply

    After reading this news, corrupt people will scream 🙂

    On the serious note, I am applying for Canadian immigration, IK was my last hope but this new Pakistan was nothing more than a delusion.

  14. Adnan  March 9, 2019 9:14 pm/ Reply

    Come on people. All those who are saying that poor people are being suppressed, this price increase is only for rich people. Poor people don’t buy Honda Civic or Grande. They buy smaller or used cars. And there is no price hike in that sector. Tax reforms are necessary to nip the evil of debt which increases every day. Let the affording people pay the taxes.

  15. Salman  March 9, 2019 10:55 pm/ Reply

    Senior citizens plz Dnt be selfish and thing abt others as well ….people are not that rich…..Govt shld take this decision back and applied this tax above 1800 cc

  16. Anonymous  March 13, 2019 11:14 am/ Reply

    This is totally unfair of government , increasing price @ 10% FED for no reason , Remove the Token money then, why we pay tokens then ??? this is not fair at all.

  17. Ali  March 18, 2019 7:00 am/ Reply

    Shame on Govt few people in comment section saying poor people cant afford 1800cc lol . What is the standard of cars here how safe are local manufactured cars to drive ? Not everyone who buys 1800cc are rich get it. Some have gathered all the money to buy according to Pakistani standards so called best selling cars shame on IK i voted the wrong person

  18. Khan M. N  April 18, 2019 9:12 am/ Reply

    Asad Umar
    Plz let some one else to act on your behalf. How can you increase excise duty to 20% from 10 on 1700cc and Obove. You are despare and nation is more desperate than you. Remember your seat is not permanent.

  19. Anonymous  April 30, 2019 12:25 pm/ Reply

    Pakistan is a God Forsaken Country, its people are Slaves to the Rich Feudal s sitting in Parliaments and High Grade Officers as Bureaucrats. We are Born to Pay Taxes in this Nation until death.

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