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India charges 17% tax on cars, Pakistan 30%, say EDB officials

Rates of cars have gone down due to the revision in taxes, say EDB officials

By Amina Amir
August 02, 2021
— AFP/File
— AFP/File

Engineering Development Board (EDB) officials said Monday Pakistan has imposed 30% of tax on cars, while India charges 17% of tax on cars as they drew attention to the fact that taxes play a major role in determining the prices of cars.

The rates of cars have gone down due to the revision in taxes by the government, discussed the Senate Standing Committee on Industries and Production, whose meeting was chaired by Senator Faisal Sabzwari.

"New cars have airbags installed in them; we have told companies they have to [make cars] in line with the international agreements that Pakistan has signed," the officials said.

The demand for cars has increased following a reduction in taxes, the officials added.

Secretary Ministry of Industries and Production, speaking to the committee, noted India not only manufactured car parts but it produced raw materials.

"The rate of cars did not increase by the pace they should have," the secretary added.