Hyundai Nishat Motor (HNM) has announced a significant revision in the price of its Hyundai Sonata 2.5L model, following changes in the Advance Income Tax under the Finance Act 2023. The company has shifted from a fixed tax amount to a percentage-based tax value for vehicles with an engine capacity of 2001cc and above. This change means that the tax amount will now be variable and calculated based on the ex-factory price of the vehicle. The new pricing structure will come into effect from July 1, 2023.
The Hyundai Sonata 2.5L, previously priced at Rs. 11,280,000 with an advance tax of Rs. 300,000, will now see a revised tax rate. For Filers, the tax rate has been increased to 6%, resulting in a tax value of Rs. 676,800. This adjustment signifies an increase of Rs. 376,800 in the tax amount.
However, the impact is even more substantial for Non-Filers. Previously, Non-Filers were subject to a tax rate of Rs. 900,000. Under the new policy, this rate has been revised to 18%, taking the tax value to a staggering Rs. 2,030,400. This means Non-Filers will have to pay an additional Rs. 1,130,400 if they wish to purchase the Sonata 2.5L.
The Finance Act 2023 has also outlined revised rates of Advance Income Tax for other vehicle categories. Vehicles with engine capacities ranging from 2001cc to 2500cc will face a 6% tax, while those with capacities from 2501cc to 3000cc will be taxed at 8%. Cars with engines exceeding 3000cc will be subject to a 10% tax.
These revisions are reportedly part of the government’s strategy to expand the tax net, in response to demands from the International Monetary Fund (IMF). The move is particularly aimed at increasing the tax rate for Non-Filers, which is expected to encourage more citizens to file their taxes, thereby boosting government revenue.
The impact of these changes on the price of the Hyundai Sonata 2.5L and other vehicles is significant, and it remains to be seen how consumers will respond to these new tax policies.
