In the budget for the financial year 2021-22, a holding tax of Rs. 50,000 to Rs. 200,000 was proposed on new vehicles ranging from 1,000 to 2,100 cc. According to the budget documents, Rs. 50,000 with holding tax has to be paid on the purchase of one thousand cc vehicles. In addition, Rs. 100,000 on vehicles up to two thousand cc and Rs. A holding tax of Rs. 1 lakh has been proposed.
On the other hand, the budget proposed exemption on federal excise duty on locally manufactured vehicles up to 850 cc. Exemption on customs and regulatory duty on exported vehicles up to 850 cc is also proposed. The percentage was reduced to 12.5 percent.
