The automobile sector in Multan is reeling under severe crisis following the introduction of new vehicle tax in the federal budget 2024-25.
The withholding tax, levied at a rate of 0.2% on vehicle invoices, caused a significant increase in car prices, leading to a dramatic slowdown in business.
Impact on car dealers, buyers
Car dealers and enthusiasts across Multan are voicing their frustration and concerns over the new tax. The increase has not only affected new vehicle sales but also the prices of existing stock, putting a strain on their business.
Rana Kaleem, vice-president of the Automobile Dealers Association, highlighted the problem: “There used to be a fixed tax, but now it has been added to the invoice. Even though it is 0.2%, it varies from vehicle to vehicle and is not negligible.” “
He further stated that the already imposed withholding tax was also increased, which had an adverse impact on business.
Buyers’ concerns
Prospective car buyers are facing considerable problems due to the increase in taxes. Muhammad Imran, a local citizen, shared his frustration:
“I’ve been visiting showrooms for four days, but I can’t find affordable Japanese cars. The prices of the available ones are so high that I can’t buy them, and the prices of local cars have also increased.”
Business slowdown
Car dealers report that the new invoice tax has led to an increase in car prices, which has seriously affected their business. The once-booming market for new and used vehicles has all but ground to a halt, and fewer buyers can afford the increased costs.
