The first federal budget of the government of Tehreek-e-Insaf (PTI) is unveiled in the National Assembly which is a combination of good and bad news for the automobile sector of the country. The main highlight of the federal budget 2019-20 as far as the automobile sector is concerned, has been the expansion of the scope of Federal Excise Duty (FED) on different categories of locally manufactured/assembled cars. The proposed FED in accordance with each category is mentioned below. Previously, the government had imposed 10% FED on locally manufactured cars of 1700 cc engine displacement and above through the Finance Supplementary Bill 2019. It was also considered that the government is looking to withdraw this 10% FED in its first budget but things have gone differently. The proposed imposition of FED has only expanded the scope of taxation by bringing all the categories of cars under some amount of duty. Note here that the cars between 1700 cc and 2000 cc will now be charged with 5% FED rather than the old 10% FED. Moreover, 10% FED on cars over 2000 cc will also be reduced to 7.5% according to the latest proposed duty. It means that all the potential buyers of cars over 1700 cc ...