The government unveiled some new recommendations for its Finance Supplementary Bill on Thursday. The supplementary bill brought in a few changes, some of which will affect the country’s automobile industry.
According to the new recommendations, non-filers will now be able to purchase locally manufactured cars that are beyond 1300 cc. Prior to this new recommendation, non-filers could only purchase locally manufactured cars of up to 1300cc.
The implementation of the newly revised bill, will allow for the engine cap to be removed. However, the removal of the cap comes with a few other conditions, specifically related to the Federal Excise Duty (FED).
According to the revised bill, all locally manufactured cars that have an engine capacity of more than 1700 cc will be subject to a 10% FED. This is bad news for Honda and Toyota, as both the Civic and the Corolla Grande, will see an increase in their price levels.
For example, the 1.8 i-VTEC Honda Civic costs approximately 2,800,000 rupees, however, after the implementation of the 10% FED the Civic will cost 3,000,000.
The 1.8 Altis Grande Toyota Corolla costs 2,860,000 and after the increase in the FED will cost close to 3,060,000 rupees.
All the different variants of these cars will also be affected. All other car manufacturers that have automobiles which are beyond 1700 cc will also be subject to the FED. Previously the same duty was placed on cars that were 1800 cc and above.