Pakistan’s auto industry is currently facing significant challenges, including a sharp rise in car prices and a significant decline in sales.
ISLAMABAD: The government is contemplating a substantial rise in withholding tax on new car purchases, with proposed changes not limited to a flat increase but a percentage-based hike affecting cars with engine capacities ranging from under 850 cc to 2000 cc.
Honda Civic is a popular sedan that is known for its aesthetics and comfort. It sets a new standard in sedan sophistication with its advanced features and luxurious design, maintaining its position despite competition from other automakers.
Equipped with the latest safety and driver assist technologies, the Civic aims to help and protect drivers. Over the past decades, the Civic has evolved through several generations, with Honda constantly introducing the latest trims.
The Civic’s performance, particularly its i-VTEC engine, is a key focus. Its strong demand and quality contribute to its high resale value, making it a desirable option even in the used car market.
Pakistan’s auto industry is currently facing significant challenges, including a sharp rise in car prices and a significant decline in sales.
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According to Pakistan Automobile Manufacturers Association (PAMA) data, Honda’s sales have suffered. In the first six months of this fiscal year, less than 5,000 units of Honda’s locally assembled four models were sold.
Notably, the popular Civic and City models sold 3,938 units between July and December last year, marking a drop of over 50% compared to the same period last fiscal.
Revised Withholding Taxes on Honda Civic 2024
| Up To 850cc | Current Value | Current Tax | Proposed Tax (%) | Proposed Tax (pkr) | Difference (pkr) | |
| Honda Civic | Honda Civic Oriel | 8,659,000 | 50,000 | 2.00% | 173,180.00 | 173,180.00 |
| Honda Civic | Honda Civic RS | 9,899,000 | 50,000 | 2.00% | 197,980.00 | 147,980 |
Taxes on Cars in Pakistan after Budget 2024-25
| Engine Size (cc) | Tax Rate (%) |
|---|---|
| Up to 850 | 0.5 |
| 851 to 1000 | 1 |
| 1001 to 1300 | 1.5 |
| 1301 to 1600 | 2 |
| 1601 to 1800 | 3 |
| 1801 to 2000 | 5 |
| 2001 to 2500 | 7 |
| 2501 to 3000 | 9 |
| Above 3000 | 12 |
