Calls for Review of Taxes and Duties on Luxury Vehicles Amid Fears of Market Slowdown

Islamabad (City Reporter) – President of G-8 Markaz and the Islamabad Car Dealers Association, Ajab Khan, has expressed concern over the new taxes and duties imposed on the automobile sector in the federal budget, stating that these measures will increase vehicle prices and are likely to negatively affect buying and selling activities in the market.

He said that the government has increased the Federal Excise Duty (FED) and other taxes on imported luxury vehicles and those with larger engine capacities, which will place an additional financial burden on the automobile sector. Although certain tax incentives for locally manufactured electric vehicles have been retained, he noted that the new taxation measures could create uncertainty in the market overall.

The President of the Car Dealers Association urged the government to review its tax policy in consultation with stakeholders from the auto sector so that the confidence of the business community can be restored, investment can increase, and the automobile industry can move toward sustainable growth.