ISLAMABAD: A Series of tax impositions on import proposed in the Federal Budget 2o24-25 can lead to the rise in the prices of of all motor vehicles. The new tax-oriented budget can also affect the price of Honda bikes including Honda CD 70, Honda CG 125, Honda CD 70 Dream, and Pridor.
Honda has a strong market presence in Pakistan with their Honda CD 70, CG 125, and Pridor being very popular in the country.
Market experts indicated that the Honda CG 125 along with the Honda CD 70 account for more than 40% of the market.
Two-wheelers represent the most widely used form of transportation in Pakistan, with Honda dominating the market significantly over other domestic and imported motorcycle brands.
Earlier, the federal government has also ended import tax exemptions on various items including luxury vehicles, particularly those worth $50,000 or more, which will now face increased taxes and duties.
The government has decided to set a tax collection target of Rs12,970 billion during the upcoming fiscal year which will be carried out through an increase in income and sales tax collection along with the rise in import duties on luxury items and broadening tax net by inducting more taxpayers.
An increase in sales tax and import duties on raw materials can increase the price of Honda CG 125 and other motorbikes in the upcoming months.