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Making Automobiles Affordable for the Middle Class

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  • Mohammad Shaaf Najib

    (Pakistan Institute of Development Economics)

Abstract

In March, 2019, the government introduced the Finance Supplementary Second Amendment Act, 2019. Among other things, through the act government introduced a 10 percent Federal Excise Duty (FED) on cars with engine capacity of 1,700cc and above. Later on, in the annual budget for fiscal year 2019-2020, the government decided to further expand the FED regime in the automobile sector. As a result, multiple tax slabs were introduced as listed in Table 1.

Suggested Citation

  • Mohammad Shaaf Najib, 2021. "Making Automobiles Affordable for the Middle Class," PIDE Research Report 2021:7, Pakistan Institute of Development Economics.
    • Handle: RePEc:pid:rrepot:2021:7
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