KARACHI: Confusion surrounds the fate of the general sales tax (GST) on hybrid vehicles following the unveiling of the FY27 budget, which is set to impose a higher tax after the current auto policy expires on June 30.
As most of the auto assemblers did not respond to the query about the GST rate, and Finance Minister Muhammad Aurangzeb also did not disclose anything in his budget speech, one of the local assemblers, who asked not to be named, said that stakeholders have been regularly holding discussions with policymakers on the GST issue.
It is not clear whether the government will slightly jack up the GST or maintain it under the pressure of auto assemblers, he said.
The International Monetary Fund is also reportedly forcing the government to raise the GST, but the assembler said he cannot confirm this development related to the IMF pressure.
Topline Securities Ltd said that hybrid vehicles are now subject to GST rates of 18pc (up to 1,800cc) and 25pc (1,801cc-2,500cc), compared to the previous rates of 8.5pc and 12.75pc, respectively.
