Why cars are expensive in Pakistan than India?

New cars in Pakistan have become expensive. India has huge demand for small cars that makes local production of car parts cheaper due to economies of scale. Taxes and duties in India are also lower than in Pakistan. The taxes and duties in Pakistan are almost 40\% of the total price of a car.

Why cars are very expensive in Pakistan?

“Cars are expensive but the real issue is that the buyers do not get the best value for their money,” Munj said, adding overpricing and that too without the international standard safety and quality features was the real issue.

Why are old cars so expensive in Pakistan?

In Pakistan, there are no facilities to start a company for car making or car tools. So , everything they want they need to IMPORT from another country. So , when you don’t make anything and all you do is import in high price ,It’s needed to make the price higher in order to get benefitted plus taxes .

Why is there so much tax on cars in Pakistan?

“When we come to the local industry, the raw material and parts are expensive due to the dollar rising. Federal excise duty is imposed on the finished products, then that is followed by sales tax which makes the overall price high,” he continues to rant and rave.

Why do cars appreciate in Pakistan?

There is no locally made metal sheet for the car and it is imported along with several body parts. Thus, according to the PAMA chairman, it is the taxes along with the increased import prices due to the government’s anti-import policies to balance the balance of payments, which leads to such a high price.

Why is Audi expensive in Pakistan?

To be fair, cars are an expensive commodity everywhere, but in Pakistan they have always been more expensive than usual compared to other countries like China or India. Most of this, of course, has to do with the barely present infrastructure of car manufacturing in Pakistan and the dependence on imports.

Why cars become expensive in India?

Maruti Suzuki is not the only Indian carmaker to hike prices of its cars due to the rising input costs. The Indian auto industry is grappling with weaker demand and higher costs since the coronavirus pandemic struck in March last year. Various carmakers have also increased prices this year to keep up with rising costs.

What is the tax on 1000cc car in Pakistan?

Rates of Income Tax on Vehicle Registration in Pakistan

Engine Power of Vehicle	For Filers (PKR)	For Non-Filers (PKR)
Motor Cars 1000cc	10,000	20,000
1000 to 1199cc	1,500	3,000
1200 to 1299cc	1,750	3,500
1300cc	2,500	5,000