Pakistan imposes 45% more tax on cars as compared to India: EDB


The government of Pakistan has imposed almost double tax than India on cars, Engineering Development Board (EDB) officials said. Currently, Pakistan has imposed 30 per cent while India has imposed 17 per cent tax on cars.

Senate Standing Committee on Industries and Production chaired by Senator Faisal Sabzwari discussed that the rates of cars in the country had gone down due to the revision in taxes.

The EDB officials said that they had communicated to the companies to make cars in line with the international agreements that Pakistan has signed. New cars in the country have airbags and possessed other features, Officials added.

The officials further said that the imposition of tax had increased demands for cars.  

Speaking to the committee Secretary Ministry of Industries and Production said that India not only manufactured car parts but it produced raw materials. “The rate of cars did not increase by the pace they should have,” the secretary added.

Responding to a question during a telethon, Imran Khan said that the government had reduced tax on cars in the FY2021-22 budget. He assured the caller that he would look into the matter of why the rates hadn’t decreased so far.

“We had reduced tax on 1,000cc cars so they can be bought at a lower price as common citizens use them, but if the rates haven’t been reduced, I will check them,” the prime minister said.

While responding to the question from Imran Khan, Federal Minister for Energy Hammad Azhar clarified that they had issued a notice regarding the reduction of prices. In order to meet the demand, the companies have increased their productions, he added.  

 Increasing the demand of cars is a sign and it shows that there is economic prosperity, the minister said.

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