Lucky Motors COrporation Limited (LMCL) has had a lot of success in Pakistan over the past few years. KIA’s Sportage and Sorento hit the roads. However, this new twist could cause problems for both the company and the customers. LMCL has clarified the 2022 KIA price increase. According to the company, the increase is due to the capital value tax imposed on high-end vehicles. Therefore, many KIA cars fall under this price hike.
About the CVT
Recently, the federal government imposed a capital value tax on all high-end vehicles. previously it set the tax at 2 percent. But, it could have increased the price to the detriment of the public. Thus, the Federal Board of Revenue (FBR) reduced the CVT tax from 2% to 1%. Although the tax is reduced, it will affect the market worse.
The tax is applicable on all vehicles with engines over 1300cc. In addition, electric vehicle buyers must pay tax on the purchase of cars above the battery size of 50 kWh. This price increase has affected the sales of Proton Saga, MG HS, H6, Haval Jolion etc as the tax is due on all turbocharged engines. This CVT tax is likely to impact mid-range and economy car buyers.
2022 KIA Price Increase
KIA raised the prices of all its motor vehicles except the KIA Picanto. The company clarified that there was no change in the ex-factory prices of the vehicles. Therefore, the KIA 2022 price increase is only due to the CVT.
The tax is applied to all cars, including all variants of KIA Stonic, KIA Sportage and KIA Sorento. With the tax officially in effect, the new prices are as follows.
With KIA, we are going to see this increase in the prices of cars from all the other companies. Companies are going to have a minor change in their application.