Car enthusiasts believe that after the government removes its regulatory duty on the import of mobile devices and vehicles, cars will become less expensive, but will this actually happen?
According to the interests of car enthusiasts, Japanese cars provide more options than local vehicles, so in addition to using locally produced vehicles, they are also interested in used cars imported from Japan. The best cars are frequently chosen to be Japanese vehicles.
In an effort to limit imports in light of dwindling foreign exchange reserves, the federal government raised the regulatory charge on the import of used vehicles to 100% in June of last year with an expiration date of March 31, 2023. However, the government hasn’t made it clear whether this obligation will remain in place or be dropped.
Auto dealers claim that the termination of the regulatory duty will result in a decrease in the price of 1800 cc vehicles, but over the past year, the value of a dollar has increased by more than 100 rupees. It’s unlikely that used car prices will decrease significantly.
According to data on the sale and purchase of new vehicles in the country, the sale of small vehicles decreased by more than half in March of this year compared to March of last year, which is the main reason for the high pricing. There is growth.
Buyers are turning to inexpensive and used cars as a result of the sharp increase in new car prices, but these vehicles are also getting more and more out of reach as a result of governmental regulations.
The data show that, after 100% regulatory duty, a used 660 cc imported car cost between Rs 33 and Rs 34 lakhs last year instead of between Rs 22 and 23 lakhs before. The price of the dollar carat won’t fall below 30 to 31 lakh rupees even if the duty is removed because it is currently in Pakistan pleading with the stars.
Automobile experts argue that it is erroneous to think that the removal of regulatory duties will make cars more affordable than they were, but the truth is that cars will remain expensive despite the removal of RD due to the strengthening of the dollar.
The regulatory duty for 660-cc cars has increased from roughly 6.5 lahks to more than 2.5 lahks since it was first put into effect in May of last year.
In comparison to the prior year, the cost of a 1000 cc car has increased by Rs 5 lakh, and the cost of a 660 cc car has increased by Rs 3 to 4 lakh. The question is whether the car will be expensive for the importer. How do you intend to market?
According to FBR, anyone can import a new car into Pakistan if they comply with the rules, which include paying duty and taxes, but only Pakistanis who are living abroad are permitted to import used cars.
Most used vehicles are imported through the gifted program. The Import Policy Order 2022 currently forbids the importation of any vehicles that are older than three years.
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