LAHORE: Automotive companies across the board have revised their prices upwards following the Federal Board of Revenue’s (FBR) decision to increase the general sales tax (GST) from 17% to 18%.
The FBR updated the Sales Tax Act, 1990 with S.R.O. 179(1)/2023 to raise the GST. Suzuki was the first company to amend its prices in response to the decision. However, Suzuki’s decision set off a round of price increases with Toyota following suit in a matter of hours. The price increases have carried on February 20 into February 21 with Lucky Motors, Road Price, Sazgar, and Yamaha also increasing their prices.
Toyota’s new prices
The price increases are as follows:
Lucky Motors’ new prices
The price increases are as follows:
Sazgar’s new prices
The price increases are as follows:
Road Princes’ new prices
The price increases by Road Prince are as follows:
Yamaha’s new prices
The price increases are as follows:
A possible unaffordability crisis ahead
The increase in the GST is part of the Government’s broader fiscal measures to increase revenue generation. The measures, particularly the increase in GST, are expected to trigger a round of inflation across the board. With January’s inflation already at a five decade high, further inflationary pressures on customers are likely to further dampen automotive sales. January sales data, provided by the Pakistan Automotive Manufacturers Association, saw a year-on-year (YoY) contraction of 31% with 7MFY23 sales down 34% YoY as well.
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