The popular car brand Suzuki raised the prices for all its cars under the 1300 cc range. The increase in prices comes as the government recently passed the Finance Supplementary Bill 2021 (FSB), imposing taxes on various items, including cars.
Under the FSB, the government proposed several Federal Excise Duty (FED) and Sales Tax hikes for locally assembled and imported cars. As per the FSB, also known as mini-budget, the government imposed FEDs based on the engine sizes of cars.
For 0-1300cc cars, the government imposed a tax of 2.5%. Important to note, previously there was no tax on 1300cc cars. Before the mini-budget, the duty on 1001-2000cc was 2.5%; however, the government increased tax to 5%. A 10% FED has been imposed on cars above 2000cc, which was 5% before the mini-budget.
Read more: Cabinet approves controversial mini-budget
Similarly, the government also raised taxes on locally assembled hybrid cars. For hybrid cars up to 1800cc, the new tax is 8.5% and 12.75% on hybrids from 1801-2500cc. Meanwhile, for CBU/imported electric vehicles, the tax increased to 12.5% from the previous 5%.
Owing to the increase in taxes, the predictions were that car companies will soon announce new increased prices. It appears as if the predictions came true as Suzuki recently raised its prices.
New Suzuki prices
According to reports, Suzuki Alto, Suzuki Cultus, and Suzuki Wagon R, all saw a massive price hike. The base variant, Alto VX, will now cost Rs. 1,306,000 compared to the previous rate of Rs. 1,274,000. It means the car has seen a jump of Rs. 32,000, which is a lot for a small car.
Meanwhile, the mid-variant Alto VXR has seen an increase of Rs. 38,000, taking the price to Rs. 1,546,000 against the previous price of Rs. 1,508,000. And the top of the line variant, Alto VXL, saw an increase of Rs. 43,000 and now it will cost Rs. 1,747,000 against Rs. 1,704,000.
Important to note, Suzuki Alto became the best-selling car in Pakistan. According to official figures, Suzuki sold 9,195 Altos last month, making it the best-selling vehicle in December 2021. This is a 280 percent rise from November 2021, when it sold 2,420 copies.
In the Pakistani car market Pak Suzuki Motor Company (PSMC) has been an unstoppable force, setting sales records twice in the calendar year 2021. PSMC reached a new monthly record of over 15,500 units sold in Dec surpassing its previous high of over 15,200 units sold in July 2021 pic.twitter.com/kegaqB9q1T
— Developing Pakistan (@developingpak) January 13, 2022
Similarly, the new price of the Suzuki Cultus base variant, Suzuki VXR, is Rs. 2,030,000 against the old rate of Rs. 1,904,000, means its price has been increased by Rs. 126,000. The price of the mid variant, Suzuki VXL, is increased by Rs. 139,000, taking the price to Rs. 2,244,000 against the previous price of Rs. 2,105,000. The top of the line, Cultus AGS, saw a jump of Rs. 150,000, taking the price to Rs. 2,422,000 against the old rate of Rs. 2,272,000.