In recent days, there has been a substantial decrease in car prices in Pakistan. Lucky Motors reduced the price of the Stonic by 1.5 million PKR, while Peugeot Pakistan slashed the price of the 2008 by 450,000 PKR. Additionally, Pakistan Suzuki announced a 710,000 PKR reduction in the Swift’s price. But what’s the reason behind this sudden price drop? Notably, renowned economist Ali Khizer sheds light on the matter. Let’s explore the impact of the new GST rates and the current trend in car prices.
Before the reduction, the Stonic’s price dropped by 24%, Swift by 13%, and Yaris 1.3 CVT and Honda City CVT by 3%. Ali Khizer points out that the new prices, after the reduction, fall between 4.69 million and 4.77 million PKR. Previously, these same models were priced between 4.83 million and 6.28 million PKR, indicating a significant change. The primary reason for these lower prices is the 25% GST on cars without GTS. Remember that in March 2023, the government increased the GST rate from 18% to 25% for cars above 1400 cc. During that time, only Stonic was affected, as it was the only model exceeding 1400 cc and without SUV status. However, Stonic anticipated the impact due to its already high price. Later, in March 2024, the government revised the regulations, raising the GST rate to 25% for all cars above 1400 cc. In response, Toyota and Honda also reduced their car prices to avoid the new GST tax. Now, the question remains: Will Toyota and Honda, along with Suzuki, continue to lower prices? What are your thoughts on this significant price drop in the car market this week? Share your opinions in the comments section!
Anchor: Tariq Mehboob
#CarPrices #CarPricesDecrease #Car #CarDealer #Automobile #Lahore
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