Hyundai Nishat Motor has announced a revision in the price of the Hyundai Sonata 2.5L, a luxury sedan, due to a change in the Advance Income Tax (AIT) rate, as per official sources. The new tax rate, which came into effect on July 1, 2023, is based on a percentage of the vehicle’s value instead of a fixed amount. This new tax rate has increased the price of the Hyundai Sonata 2.5L for both filers and non-filers.
The Hyundai Sonata 2.5L is a premium sedan that offers a 2.5-liter turbocharged engine with an eight-speed automatic transmission. This car has features such as LED headlights, a panoramic sunroof, a digital instrument cluster, and a touchscreen infotainment system.
The previous price of the Hyundai Sonata 2.5L was Rs. 11,280,000, with an AIT of Rs. 300,000 for filers and Rs. 900,000 for non-filers. While the new price of the car is Rs. 11,956,800 for filers and Rs. 13,310,400 for non-filers. Additionally, the new AIT rate for filers is 6%, which amounts to Rs. 676,800, an increase of Rs. 376,800. And the new AIT rate for non-filers is 18%, which amounts to Rs. 2,030,400, an increase of Rs. 1,130,400.
This new tax policy was introduced by the government in the Finance Act 2023, which revised the AIT rates for vehicles with engine capacities of 2001cc and above. The new rates are as follows:
Engine CapacityAIT Rate2001cc to 2500cc6%2501cc to 3000cc8%Above 3000cc10%
The government has reportedly revised these tax rates to increase the tax net under the International Monetary Fund’s (IMF) demand. The step is expected to increase revenue collection and discourage the import and purchase of luxury vehicles.