Business

Govt to increase sales tax on small cars in upcoming budget 2025-26

Published by
Staff Reporter

ISLAMABAD: According to the details, the government is set to increase prices of locally built or assembled vehicles with an engine capacity of up to 850cc from July 1, 2025.

According to the sources, the government has decided to increase the rate of sales tax from 12.5 percent to 15-18 percent in the upcoming budget 2025-2026.

Currently
, a reduced rate of 12.5 percent sales tax is being charged on locally assembled or made motorcars of cylinder capacity up to 850cc.

Under the Finance Bill 2025-26, the Federal Board of Revenue (FBR) will eliminate entry number 72 of the Eighth Schedule of the Sales Tax Act 1990 to discontinue the concessionary sales tax regime for the locally assembled or produced motorcars.

Staff Reporter

Recent Posts

Transportation in the Strait of Hormuz restored, oil prices drop further

TEHRAN: After the restoration of maritime transportation in the Strait of Hormuz, crude oil prices…

5 minutes ago

Iranian rial value suddenly skyrockets, citizens flock to currency exchange centers

ISLAMABAD: Pakistan’s open currency market is witnessing an unusuawith demand for the Iranian rial rising…

36 minutes ago

Meteorological Department issues important rain forecast

LAHORE: An important forecast of the Meteorological Department regarding the weather in Lahore has come…

46 minutes ago

How much tax will be deducted from salary from July 1? New slabs introduced

ISLAMABAD: The federal government has introduced new income tax slabs for government employees and salaried…

2 hours ago

New instructions issued for pilgrims going to Iraq for pilgrimage

ISLAMABAD: The Ministry of Religious Affairs has issued new instructions for Pakistani pilgrims going to…

2 hours ago

Smartphone prices likely to drop by up to Rs 16,000

ISLAMABAD: The prices of various smartphones in the country are likely to drop by Rs…

2 hours ago