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Government to Include One-Time ‘Radio Fee’ in Car Registration

A senate committee on Monday approved a one-time “radio fee” of Rs. 500 for vehicle registration.

Almost three million cars are registered each year, and all of them have radios, according to Senator Irfan Siddiqui, who presided over a meeting of the Senate Standing Committee on Information alongside Senators Fauzia Arshad and Syed Waqar Mehdi.

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He proposed charging a Rs. 500 radio fee with vehicle registration in order to bring in Rs. 15 billion for Radio Pakistan. His suggestion received full support from the committee.

Raised Tax Rates
The General Sales Tax (GST) on automobiles was recently raised from 17% to 18% by the government. Car manufacturers announced price increases in response to the GST rate rise of 1%.

According to reports, the government may raise car taxes in the fiscal budget for 2023–24 in order to refill the national exchequer.

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The government has already suggested raising luxury item levies by 8%. Large-engined passenger cars are considered luxury commodities by the Federal Board of Revenue (FBR).

Considering these price increases, all budget automobiles would likely cost between Rs. 4 and 5 million.

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