Honda Atlas cars revised its prices of cars after the Finance Budget 2019-2020 due to the implementation of the government levies. The new prices will be an effect from 1st July.
Recently, the government announced a new Federal Excise Duties for all the categories of cars in which the cars engine capacity of 1700cc or above are including in to pay FED and the cars below of this categories will including in to pay an additional amount of tax in the budget 2019-2020. the government announced three slabs of FED:
|Engine Displacement||FED Tax|
|Cars up to 1000cc||2.5%|
|Cars between 1001cc and 2000cc||5%|
|Cars above 2001cc||7.5%|
In the previous budget, the FED only applicable on the vehicle of 1700cc engine displacement and above and the rate was 10%. the new budget 2019-2020 has come with some bad and good news for the consumers. The auto manufacturer decreases the prices of its car with the engine capacity of 1700cc and above because of the government relief them on the cars engine displacement of 1700cc and above. This a piece of great news for the consumers. You can see that the cars of engine displacement will pay 5% FED and its a 50% change. Previously they are paying 10% FED to the government. Honda Atlas is the big auto manufacture of Pakistan and is a trust-able auto manufacturer for the consumers. The decrease prices of cars and the devaluation of rupee value against the US dollar will create confusion in the consumers’ mind. However, the new prices of Honda Atlas cars will create small happiness to the consumers of 1700cc engine cars or above. The company sent the updated prices of its cars to all the dealership across Pakistan. Honda Atlas update their new prices of cars lets check how much Honda Atlas decrease their car prices after the effect of FED:
The prices shown in the table are ex-factory prices and inclusive of 17% sales tax and 5% FED on all the CKD variants of Honda. In the table we can see that the prices of all variants of Honda Civic are decreases expect the 1.5L Turbo SR and it’s just happened because the FED has come down from 10% to 5%. On the other side, the prices of all other variants including Honda CITY and BR-V are including in the category between 1000cc and 1699cc are exempt from any percentage of FED in the previous budget, but now in the Finance budget 2019-2020 5% FED applied on all these cars and that’s why the prices of these variants of cars increase. The top variant of Honda BR-V is now available at the price of Rs. 3,099,000. The new Civic 1.5L Turbo is increased by 2 Lac and now available at Rs. 4, 399,000.
Useful Link: Finance Budget 2019-2020 for Auto Industry
Moreover, the prices of cars increase in the market and it’s just happened because of the devaluation of the rupee value against the US dollar. The contentiously increasing the strength of the dollar during this tenure is putting pressure to the auto manufacturer because it’s not possible for them to control the sales and make a profit. As we know that the increasing prices of cars affect the purchase and sales of cars but the automaker said that in the current situation there is no other option for them.
In the future, the consumers expect that the prices of the cars will fall down and make an easy way for them to buy cars.