Kia car prices after CVT

 

 

The initial milestone for any individual is getting his/her own car. Why is that so? Well, because it requires a substantial amount of investment, probably which a person might have never saved up before. The new purchase comes with many legal obligations and one must know the active factors of this process before getting one. There are various taxes such as Value Added Tax (VAT), GST, etc. that can be easily computed using a tax calculator. The newly imposed “Capital Value Tax” (CVT) is a car tax and constitutes a significant portion of tax revenue for the government. Whether you buy a Kia car from the best in class line-up of Kia Sorento, Kia Stonic, Kia Picanto, Kia Sportage, and Kia Carnival or any other car these taxes are applicable regardless of which brand you choose. 

 

 

Types of Vehicle Tax

 

 

In Pakistan, a person has to pay a certain number of taxes before buying a vehicle. Below is the list of various types of vehicle taxes that private and commercial vehicle owners must pay to enjoy the ownership of any vehicle. 


 

 

Token Tax: 

In order to take a vehicle on the road, a person has to legally certify their vehicle. This certificate is known as “Token Tax”. This tax is paid annually and varies from car to car based on engine size. 

 

Motor Tax:

 

Another important tax is the “Motor Tax”, collected by the excise and taxation department of Pakistan. This tax ranges from 10,00,000 to 40,00,000 based on the engine capacity. 

 

Withholding Tax: 

 

The amount deducted or withheld from the gross amount at the time of payment to the receiver is known as “Withholding Tax”. This amount varies for filer and non-filer and is withheld at the time of transaction.

 

Income Tax: 

 

There is a certain percentage of tax that one must pay when owning a vehicle. This tax is known as “Income Tax” and is paid by filer and non-filer both. This tax is refundable under the condition that a person has filed his income tax returns for the relevant tax year. The income tax on cars is based on the engine power of the vehicle. 

 

Professional Tax:

 

Professional tax is deducted from salary income and can be claimed from your income tax return as your expense. This tax remains the same for all types of vehicles and is currently Rs. 200. 

 

After understanding the different types of vehicle taxes now you can easily understand the Capital Value Tax (CVT) that the Federal Government has imposed for the fiscal year 2023. Earlier the tax rate was 2% on vehicles with a price tag of over 5 million with the intention to tax only high-end luxury vehicles such as MG HS, Honda Vezel, Toyota Fortuner, Hyundai Tucson, Haval Jolian, Kia Grand Carnival, Kia Sportage, etc. But now the Federal Government has reduced the rate to 1% on all cars with engine capacity over 1300 cc and Electric Vehicles (EVs) with battery packs greater than 50 kWh. The new rate is effective from July 1, 2022, for all new bookings with revised car prices. 

 

To make matters worse, economy car-buyers that were already looking for cheaper options are now thinking to buy used cars as an alternative. Though international markets have more economical options such as Kia Rio and Kia Cerato but their capacity to purchase is even with the prevailing prices. The cars that were exempted from the new CVT net are as follows: 

 

The price increase was inevitable but there was one automobile manufacturer who came forward to further clarify the new prices just for the sake of transparency. Yes, you guessed it right! It is Kia Pakistan. 

 

After the release of the news on CVT, Kia Motors immediately published a press notice entailing the new prices revised after CVT inclusion for its customers. Kia Motors revised  Kia car prices on all variants under the Finance Act, 2022, and has announced to book Kia cars with new CVT, effective from July 1, 2022. 

 

After applying the new CVT on Kia cars, the revised prices are as under:

 

Kia Picanto 

 

Kia Picanto falls under 1300 cc engine capacity and since is exempted from the CVT. for this reason Kia Picanto price remains the same.  

 

 

Kia Stonic

 

Kia Stonic comes in two variants and is therefore differently priced after CVT. 

 

 

Kia Sportage

 

Kia Sportage has three different variants and after the CVT inclusion, Kia Sportage 2021 price differs greatly from Kia Sportage 2022 price. 

 

 

Kia Sorento

 

Kia Sorento has three trims, all of which were affected by the new CVT. The revised prices are as follows:

 

 

Kia Carnival

There had been no official increase in Kia Carnival price after the CVT but Kia Motors have already made the current Kia Carnival 2022 price transparent to maintain customers’ trust and loyalty. 

 

 

 

Kia Motors Pricelist 2022 ⏐ Kia Pakistan ⏐ Kia Official 

 

 

 


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