KARACHI: Following Indus Motor, Honda Atlas Automobiles has additionally hiked costs of its Civic variants by round 11.5% to cross on the influence of lately launched federal excise obligation (FED) on vehicles of over 1700cc capability, coupled with rupee depreciation.
Furthermore, Pak Suzuki Motors has introduced to cross on the influence of elevated registration fees to non-tax filers on all new vehicles.
“Sure, now we have elevated costs,” Honda Atlas Automobiles (Pakistan) Restricted Chief Monetary Officer Ahmad Umair Wajid confirmed to The Categorical Tribune on Wednesday.
“We have now modified costs of our Civic variants in 1800cc class solely…on account of imposition of 10% FED,” he mentioned.
A notification despatched from Honda to its sellers learn “as per the second modification of Finance Supplementary Invoice 2019, the federal government of Pakistan has introduced the implementation of federal excise obligation at 10% on domestically manufactured vehicles and SUVs of above 1,700 cc capability.”
“With the FED implementation and passing part of Foreign exchange (rupee depreciation in opposition to the US greenback and different main world currencies)”, the brand new retail costs come into impact from March 11, 2019, it said.
In response to the notification, the value of Civic 1.8L VTI CVT variant has been elevated by 11.56%, or Rs325,000, to Rs3.13 million and the value of Civic 1.8L VT SR CVT variant has been elevated by 11.49%, or Rs340,000, to Rs3.29 million. Honda doesn’t produce vehicles in 1,700cc class in Pakistan, nor does it manufacture vehicles of above 1,800cc capability and its Civic variants possess 1,798cc engine capability in precise, Wajid mentioned.
“Virtually 40% of our gross sales are within the 1,800cc Civic variants,” he mentioned.
Earlier on Monday, Indus Motor introduced to swell costs of its Corolla and Fortuner variants to regulate the influence of 10% FED.
Round 24% of Indus Motor gross sales are in 1,700cc and above class, it was learnt.
The lately launched FED doesn’t influence Pak Suzuki Motor Firm’s gross sales, because it doesn’t produce vehicles of above 1,700cc domestically.
Nonetheless, Suzuki has directed its sellers to factor-in the influence of elevated automotive registration fees in costs for non-tax filers.
Accordingly, the corporate has issued a brand new retail promoting record mentioning totally different tax fees for tax-filers and non-filers on account of automotive registration on all of the locally-produced new vehicles.
“No, now we have not raised costs,” Pak Suzuki Motor Firm spokesman Shafiq Ahmad Shaikh said.
The federal government has lately introduced the rise of automotive registration fees for non-tax filers. “We have now simply communicated this to our sellers,” he mentioned.
“We’re not beneficiaries of upper registration charge to be charged from non-tax filers,” he clarified. “This (registration charge) isn’t associated to us. The federal government is amassing the tax,” The registration charge on vehicles of the capability from 800 to 1,600cc range between Rs7,500 to Rs50,000 for tax-filers and Rs15,000 to Rs150,000 for non-filers. The costs rise additional for engines having capability above 1,600cc for each filers and non-filers.
The federal government launched 10% FED and hiked registration charge, following which it lifted the ban on buy of a brand new automotive by non-tax filers by way of the finance invoice 2019 final week. The earlier federal authorities had imposed the ban with impact from July 1, 2018. The ban has impacted trade gross sales and lowered tax assortment for the federal government as properly.