FED in range of 2.5% to 7.5% imposed on locally assembled cars

KARACHI: The Federal Budget 2019-20 has proposed Federal Excise Duty (FED) in the range of 2.5% to 7.5% on locally manufactured or assembled motor cars, SUVs and other motor vehicles, principally designed for the transport of persons.


Through Finance Supplementary Second Amendment Act 2019 FED on cars 1700 cc and above was introduced at 10%. Now it is proposed to enlarge the scope of FED and following slabs are being introduced.

FED of 2.5% on cars from 0 to 1000cc; FED of 5% on cars from 1001cc to 2000cc and FED at the rate of 7.5% on cars from 2001cc and above at 7.5%.


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