The PDM government has successfully presented the new financial budget for 2023-2024. In this budget, they have increased the salaries of government employees up to 35%. This has made a bigger headline and overshadowed all other things. In the last fiscal year, the automobile sector faced a decline of -47.5% as the sales were suffering due to many reasons. The motorcycle, the vehicle of a common man is no different. Let’s take a look at the new financial budget and motorcycle prices in Pakistan.
Motorcycle Prices Before Budget:
Before the budget, Motorcycle prices have seen a huge increase. If compared to last year, these prices are increased by up to 35% in many cases. A normal Chinese 70cc motorcycle was costing 80,000 a year back and now it’s costing above 1 lac 10 thousand rupees on the road. This is a huge jump with no value addition or additional features at all.
Also, the PDM government had presented a mini-budget in the past. They had increased the sales tax on many items including automobiles. The general sales tax was increased to 18% from 17%. Though not much but it was an additional burden on the end consumer. One thing to be kept in mind is that the end consumer pays GST on almost everything and the tax net in Pakistan is huge as compared to many other countries.
Many motorcycle dealers and associations requested the government to reduce GST so motorcycle prices may get lowered. The association requested a decrease of 4 to 5% in GST so this relief can be transferred to the general public.
Motorcycle Prices After Budget
Surprisingly the motorcycle prices are the same as before the budget. No tax reliefs have been shared in this budget. The tax slab is still the same and no company is directed to share relief to the end consumer. Sadly our automobile industry is heavily based on foreign vendors and the majority of companies are assemblers rather than manufacturers here!