Govt extends tax exemptions from 850cc to 1000cc Cars

In a recent development, it has been said that, as per the revisions in the 2021 financial budget, the tax exemptions for 850cc vehicles have been extended to vehicles with an engine capacity of up to 1000cc. The announcement has been made by the Federal Minister for Finance and Revenue, Shaukat Tarin, in today’s  National Assembly session.

According to  reports, the government has taken the decision after studying about the limited number of options available to the car consumers in the 850cc segment. This implies that, along with the prospective decline in the prices of 850cc vehicles, the costs of 1000cc vehicles could also observe a decline, following the implementation of the budget from July 1, 2021.

The decision was deliberated in a meeting for the review and finalization of the new auto policy that had been called by the Federal Minister for Finance and Revenue, Shaukat Tarin, on June 18.

In the meeting, Federal Minister for Industries and Production, Makhdum Khusro Bakhtyar, informed the participants that the tax concessions will also be provided on the manufacturing, sales, and purchase of vehicles that are between 850cc and 1000cc.