Federal Government has decided to cut tax and duties on small vehicles in the Budget for the fiscal year 2021-22. This move was taken by the Government to reduce the prices of vehicles.
According to sources, this reduction in taxes and duties will be applicable on vehicles smaller than 850cc. The government is also focusing on a proposal that will reduce sales tax, excise duty and additional customs duty on small vehicles.
Moreover, another proposal is also under consideration to reduce taxes on various brands of new Motorcycles and new tractors.
Automobile manufacturing industries have been failed to low the prices of cars despite a visible decline in the price of the dollar in the last few months.