The government has introduced a green tax on environmentally friendly vehicles in the latest fiscal budget, leading to a notable surge in their prices.
Details revealed on Thursday show that car dealers are urging authorities to reconsider the move, warning that it could worsen the condition of the already struggling auto sector.
Read more: Govt Imposes Rs36 Billion in Additional Taxes Under New Finance Bill
As a result of the tax, the prices of hybrid cars have increased by 3% to 5%. In some cases, the added cost on a single hybrid vehicle could reach up to Rs500,000, according to the Car Dealers Association.
Dealers have observed a drop in customer interest and quiet activity in showrooms, arguing that the added tax burden is likely to further depress the market.
Rana Kaleem, a representative of the Car Dealers Association, highlighted the importance of promoting eco-friendly transport options for a greener future. He stressed that government policies should support rather than discourage such initiatives.
Although the government has expressed its commitment to green transportation, industry experts believe that taxing eco-friendly vehicles will undermine progress in this area and hurt overall sales.
