After an increase in the sales tax on vehicles with a capacity of 1400cc and more, Honda Atlas Cars Pakistan Ltd (HACPL) increased the price of its vehicles once more.
Recently, in order to earn an additional Rs11 billion in revenue, the government increased the sales tax on a wide range of items to a whopping 25%.
The decision had an effect on the auto sector, which was already contending with inventory shortages brought on by import restrictions and a significant devaluation of the local currency in a year.
“Keeping in view further increase in exchange rate PKR/USD and increase in the rate of Sales Tax from 18% to 25% on 1400cc and above CKD [completely knocked down] vehicles, HACPL has to increase current prices,” the automaker said in a letter to its dealers.
Civic 1.5L M CVT, Civic 1.5L Oriel M CVT, and Civic Rs 1.5L LL CVT will now cost, respectively, Rs8.6 million, Rs8.95 million, and Rs10.2 million due to pricing increases.
The new prices would come into effect from March 14, the company informed.
Low-end Honda City MT 1.2L prices increased by Rs 220,000 to Rs 4.799 million, while 1.2L City CVT prices increased by Rs 200,000 to Rs 4.929 million.
HACPL has announced a production stop till the end of March and placed the blame on the weak economy, difficulties opening letters of credit, and a lack of raw materials.
Nearly all Pakistani automakers have increased the price of their automobiles several times in recent months as they struggle to deal with the nation’s economic crisis, which has compelled the current administration to make some unheard-of moves.
“We are compelled to pass on some impact to the market,” IMC noted in a letter to the dealers, noting that the government has doubled the sales tax on all CKD vehicles with an engine size of 1,400cc and above (with exception of IMV-I single cabin).
Corolla 1.6 MT’s new price is over Rs6.1 million, and Corolla 1.8 CVT SR Black’s new price is over Rs7.8 million, an increase of Rs593,000 and Rs760,000, respectively.
The Fortuner Diesel Legender, which costs more than Rs20 million, is the priciest Toyota vehicle.
The current prices of the KIA Stonic EX and EX+ are Rs 5.2 million and Rs 5.73 million, respectively.
Sportage Alpha is now priced at Rs7.05 million, Rs7.79 million, and Rs8.39 million, respectively, for FWD and AWD.