Why did the car prices in Pakistan suddenly start decreasing? - Business & Economy

Over the past few days, the Pakistani automotive industry scene has taken a surprising turn, and the ever-increasing car prices have suddenly come crashing down. What has been announced?

This trend of price cuts started with the reduction of the price of the model “Stonic” of “KIA” (Stonic) by more than Rs. , and after that the price of Suzuki Swift was announced to be reduced by more than 7 lakh rupees.

Such drastic price cuts are rarely seen in Pakistan’s automotive industry and people are asking what happened to bring the sky-high prices down.

“Pro Pakistani”</a> discusses this new trend and offers insight into the factors influencing the recent price adjustment. In particular, the price of the Stonic has increased by 24 percent, the Swift by 13 percent, and the Toyota Yaris 1.3 CVT and City CVT by 3 percent. One of the key drivers behind the recent price decline is the implementation of the revised Goods and Services Tax (GST) regulations. Ali Khizr highlighted that the new price range of cars has now come down to between Rs 4.69 million and Rs 4.77 million from the earlier range of Rs 4.83 million to Rs 6.28 million. clarifies. Mobile companies refuse to block millions of SIMs, legal battle likely Ali Khizr also explained the regulatory changes that led to the recent price adjustment. According to Ali Khizr, in March 2023, the government increased GST to 25 percent on cars with engine capacity of 1400 cc and above, from 18 percent earlier. Most cars were not affected by this, but the Stonic suffered from the decision with a significant price increase. <figure class="media sm:w-1/3 w-full media--left media--embed media--uneven"> <iframe class="nk-iframe" onload="setInterval(()=>{try{this.style.height=this.contentWindow.document.body.scrollHeight+’px’;}catch{}}, 100)” width=”100%” frameborder=”0″ scrolling=”no” style=”height:400px;position:relative” src=” sandbox=”allow-same-origin allow-scripts allow-popups allow-modals allow-forms”>

However, in March 2024, the government introduced further changes, imposing a 25 percent GST on all cars with a pre-GST value of more than Rs 40 lakh. In response, Toyota and Honda quickly cut their car prices to ensure that their vehicle variants stay below the Rs 40 lakh threshold to cushion the impact of the new tax. could Subsequently, Kia and Suzuki also reduced the prices of the Stonic and Swift respectively in line with the revised GST norms.

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2024-05-05 16:50:39

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