Islamabad: Federal Finance Minister Shaukat Tarin, while presenting annual budget, announced that government has slashed sales tax on locally manufactured cars from 17% to 12.5%.
The finance minister said that government has launched ‘Meri Gari scheme’ according to which government has exempted Federal Excise Duty (FED) on 850cc cars and will slash duty on electric cars.
Moreover, advance custom duty has been exempted on vehicles having old models and manufacturing dates.
Local auto manufacturers had requested the government to cut down taxes to reduce prices of cars and off-road vehicles in the country.
The Pakistan Tehreek-e-Insaaf-led government has presented annual budget of fiscal year 2021-22 with total outlay of Rs8.48 trillion (Rs8,487 billion).