Kia declares a price increase because of the capital gains tax
Description:
In a press release, Lucky Motor Corporation Limited (LMCL) clarifies the price increase rumours making the rounds in the media. In accordance with the company"s official statement, no changes were made to the ex-factory prices of its cars.
With the exception of the Kia Picanto, all automobiles" purchase prices have increased slightly since the implementation of a 1% capital value tax (CVT) on vehicles with engines larger than 1300cc.
The following prices are subject to a new CVT rate as of right now:
Beginning with July 1, 2022, the federal government will impose a 1% CVT on automobiles with engines greater than 1300cc and electric vehicles (EVs) with rechargeable batteries larger than 50 kWh.
Initial plans called for a 2 percent CVT on vehicles costing more more Rs. 5 million. The Proton X70, MG HS, Haval Jolion, H6, and other high-end automobiles with turbocharged engines were subject to taxes as a result.
In order to help the general population, FBR reportedly cut the CVT from 2 percent to 1 percent. Market perception, though, is that the additional tax will make things worse for buyers of mid-range and economy vehicles.
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