Buying a Toyota Grande or Honda Civic will now cost Rs280,000 more like the govt. has increased duties on these cars in its mini-budget announced on Wednesday.
In the mini-budget 2019, the government had proposed a 10% increase in federal excise duty for locally-manufactured vehicles on 1800cc and above. However, it has now revised the proposed engine capacity to 1700cc variants and above.
The Honda Civic 1799cc variant and Toyota Altis Grande 1798cc variant will now fall under the purview of this mini-budget and see a price increase of 10%. According to the company websites, the variants of both cars are selling for Rs28,00000.
The mini-budget comes with another amendment that will allow non-filers to buy locally-manufactured cars irrespective of their engine capacity. This is because of the govt. has abolished a restriction that barred non-filers from buying new vehicles above 1300cc engine capacity.
The stock of all three major automakers, Pak Suzuki Motors, Indus Motors 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 are above 1300cc, 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.
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. The government’s expenses far exceed its revenue, creating a loss of over Rs2 trillion a year.
In the new mini-budget, the govt. has increased the FED on imported cars above 1800cc from the existing 20% to 25% in mini-budget unveiled on Wednesday. The duty on imported vehicles exceeding 3000cc engine capacity has been raised to 30%.