The effects of mini budget imposed by the Government of Pakistan has been started emerging in the market and now leading automobile company of Pakistan, Indus Motor has announced to increase prices. According to the reports, Indus Motor Company Limited has transferred the burden of increased taxes directly on its consumers and increased the prices. 15 to 30 thousand rupees has been increased on different models and brands of Indus Motor (Toyota). The decision of increase in prices has been immediately effected due to 1% increase in customs duty on imported parts and CKD.
After this announcement, prices of Corolla, Land Cruiser, Camry and Vigo have been increased in Pakistan and all the consumers who want to buy any of these cars, have to pay extra money. In a statement issued by CEO of Indus Motor Company Ali Asghar Jamali, it has been said that the increase in prices of cars has become necessary after increase in the duty of some auto parts. He also said that the new prices of cars will be implemented immediately and apply on the bookings of cars. However company will bare extra amount on the cars which have been already booked by its consumers.
According to the market analysts of Pakistan, automobile companies of Pakistan are increasing their profit day by day and imposed burden of all the taxes directly on its consumers. On the other end, whenever duties and prices of cars decreased in international market, Pakistani automobile companies never transfers its benefits to the consumers and took all the advantage. Due to rapidly increasing demand of new cars in Pakistan which has been now easy just because of auto financing, Pakistani automobile companies are growing its business and profit.
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On the other end, the government has also increased duty on imported cars up to 10%, which is the basic reason behind increasing demand of locally manufactured cars. Pakistani automobile companies are taking direct benefit of increasing duty on used imported cars and there is no check and balance on them by the authorities. Duty on 10001cc to 1300cc imported used cars has been increased up to around 96,000, while the prices of 1301cc to 1500cc used imported cars have been increased up to approximately 1,35,000.
It is to be noted that the Government of Pakistan has decided to increase the percentage of taxes on almost all the luxurious items in mini budget.