Business Desk 
Feb 11, 2025
An undated image of various cars. — Getty Images
The Federal Board of Revenue (FBR) has announced plans to reduce taxes on new cars, bringing good news for buyers looking for more affordable vehicles in Pakistan.
This initiative will make the car ownership easier for the public while also enhancing the local automotive industry.
Lower taxes to reduce car prices
The FBR Chairman shared that the government is working on tax reductions for new vehicles, which could lead to lower car prices. This initiative will support the automotive market and provide financial relief to consumers.
The reduction in duties and taxes will help make cars more accessible to middle-class buyers, who have struggled with rising vehicle costs in recent years.
Moreover, the automotive industry is expected to benefit as well with the ower prices. Car manufacturers and dealers may see an increase in sales, starting more production and investment in the sector.
The government aims to stimulate demand, helping both local carmakers and international brands expand their market in Pakistan.
Additionally, the proposal is expected to include relief for small and mid-sized vehicles, which are more commonly purchased by middle-income families. If implemented, this policy could bring economic growth by generating more business for car manufacturers, dealerships, and service providers.
