ISLAMABAD: Petrol cars in Pakistan could become cheaper by up to Rs1 million under the proposed new auto policy, as the government plans to reduce federal excise duty and customs duty to make vehicles more affordable.
The decision was taken on the special instructions of Prime Minister Shehbaz Sharif, according to a policy document detailing the proposed price reductions.
Under the proposed changes, locally manufactured petrol cars with engine capacities of up to 658cc could see a price cut of Rs375,000, bringing their price down from Rs3.22 million to Rs2.845 million.
Similarly, the price of petrol cars with engine capacities of up to 998cc is expected to fall by Rs440,000, from Rs4.27 million to Rs3.83 million.
The proposed reduction for petrol SUVs with engine capacities of up to 1,496cc is Rs740,000. Their prices could decline from Rs6.06 million to Rs5.32 million.
For 1,498cc petrol SUVs, the government has proposed a price reduction of Rs280,000, bringing their price down from Rs9.44 million to Rs9.16 million.
The biggest proposed cut is for petrol jeeps with engine capacities of up to 1,598cc, which could become cheaper by Rs1 million. Their prices are expected to drop from Rs12.1 million to Rs11.1 million.
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The proposed reductions are linked to cuts in federal excise and customs duties under the new auto policy, aimed at lowering vehicle prices and improving affordability for consumers.
However, the proposed price changes will depend on the final implementation of the revised tax structure.
