The automobile industry in Multan is experiencing a serious difficulty as a result of the government budget 2024–25’s introduction of a new vehicle tax.
Car prices have increased significantly as a result of the advance tax, which is assessed at a rate of 0.2% on vehicle invoices and has sharply slowed down operations.
Effect on auto dealers and purchasers
Multan’s auto enthusiasts and dealers are voicing their displeasure and worries over the increased tax. Their businesses are being strained by the increase, which has an impact not only on the prices of current inventory but also on the sales of new cars.
The problem was brought to light by Car Dealers Association vice president Rana Kaleem, who stated: “There used to be a fixed tax, but now it is added to the invoice.He went on to say that the business has suffered as a result of the increase in the already-imposed withholding tax.
Purchaser worries
The tax rise presents serious obstacles for prospective car buyers. A local resident named Muhammad Imran expressed his annoyance:
“After four days of showroom visits, I still can’t find any reasonably priced Japanese vehicles. The cost of the ones that are currently available is so exorbitant that I am unable to purchase them, and local car rates have also gone up.”
