In Pakistan, GST is known as the Federal Excise Duty (FED), which is a tax levied by the federal government on the sale of goods and services. Before the introduction of FED, cars were subject to different taxes, such as sales tax, income tax, and excise duty. However, after the implementation of FED, these taxes were replaced by a single tax rate, which was initially set at 17% but later increased to 20% in 2019.
The increase in FED has resulted in an increase in the prices of Honda cars in Pakistan. For instance, the prices of the Honda Civic and Honda City, two of the most popular models of Honda cars in Pakistan, increased by PKR 100,000 to PKR 150,000 after the implementation of FED.
In addition to FED, other factors, such as inflation, fluctuating exchange rates, and rising input costs, can also contribute to the increase in Honda car prices in Pakistan. However, FED remains one of the significant factors contributing to the increase in car prices in Pakistan, including Honda cars.
There can be several factors that can lead to an increase in Honda car prices. Here are some possible reasons:
Rising input costs: If the cost of raw materials, such as steel, aluminum, or rubber, increases, it can lead to an increase in the production cost of Honda cars, which may result in higher prices.
Fluctuating exchange rates: If the exchange rate of the Japanese yen, which is the currency used by Honda, fluctuates against the local currency, it can affect the pricing of Honda cars in that country.
Changes in taxes and duties: As mentioned earlier, taxes and duties, such as GST or customs duty, can significantly impact the prices of Honda cars in India. Any increase in these taxes or duties can lead to an increase in the price of the car.
Changes in demand and supply: If the demand for Honda cars exceeds the supply, it can create a shortage of cars, leading to an increase in the es. Similarly, if the supply of Honda cars exceeds the demand, it can lead to a drop in prices.
Upgrades and new features: If Honda introduces new features or upgrades in their cars, it can increase the production cost, which may result in higher prices.
These are some of the reasons why Honda car prices can increase. However, the exact reason for the recent increase in prices for the fourth time in 2.5 months may depend on various factors and may vary based on the location and model of the car.
|New Price PKR
|Old Price PKR
CITY CVT 1.2L
CITY CVT 1.5L
CITY ASPIRE M/T 1.5L
CITY ASPIRE CVT 1.5L