Lucky Motors COrporation Limited (LMCL) has made a lot of success in Pakistan over the few years. KIA’s Sportage and Sorento have been hauling the roads. However, this new turn could cause problems for both the company as well as the customers. LMCL has clarified the KIA price increase 2022. According to the company, the increase is because of the Capital Value Tax imposed on high-end vehicles. Therefore, many of KIA’s cars are falling under this price hike.
Recently, the federal government imposed a Capital Value Tax on all high-end vehicles. earlier, it set the tax to be 2 per cent. But, it could have increased the price to the disadvantage of the public. So, the Federal Board of Revenue (FBR) has reduced the CVT tax from 2 per cent to 1 per cent. Although the tax is reduced, it is going to affect the market in worse ways.
The tax is applicable on all vehicles with engines larger than 1300cc. Also, the EV buyers have to pay the tax on the purchase of cars above the battery size of 50kWh. This price hike has affected the sales of Proton Saga, MG HS, H6, Haval Jolion, etc as the tax is payable on all the turbocharged engines. This CVT tax is likely to have effects on mid-range and economy-car buyers.
KIA Price Increase 2022
KIA has increased the prices of all its motor vehicles except for the KIA Picanto. The company has clarified that there are no changes in the ex-factory prices of the vehicles. Therefore, the KIA price increase 2022 is sole because of CVT.
The tax is applied on all cars including all variants of KIA Stonic, KIA Sportage and KIA Sorento. As the tax is officially effective, the new prices are as follows.
Along with KIA, we are going to witness this price increase in the cars of all the other companies. The companies are going to have a minor change in their demand.