The advance tax rates on motor vehicle registration and purchase from manufactures for year 2021/2022 shall be:–
| S. No. | Engine capacity | Tax |
| (1) | (2) | (3) |
| 1. | Up to 850cc | Rs. 7,500 |
| 2. | 851cc to 1000cc | Rs. 15,000 |
| 3. | 1001cc to 1300cc | Rs. 25,000 |
| 4. | 1301cc to 1600cc | Rs. 50,000 |
| 5. | 1601cc to 1800cc | Rs. 75,000 |
| 6. | 1801cc to 2000cc | Rs. 100,000 |
| 7. | 2001cc to 2500cc | Rs. 150,000 |
| 8. | 2501cc to 3000cc | Rs. 200,000 |
| 9. | Above 3000cc | Rs. 250,000] |
The tax rates shall be increased by 100 per cent in case of person not appearing on Active Taxpayers List (ATL).
The provincial excise authorities shall collect withholding tax at the time of registration or transfer of motor vehicles. The authorities shall collect tax at the following rates:
| S. No. | Engine capacity | Tax |
| (1) | (2) | (3) |
| 1. | upto 850cc | – |
| 2. | 851cc to 1000cc | 5,000 |
| 3. | 1001cc to 1300cc | 7,500 |
| 4. | 1301cc to 1600cc | 12,500 |
| 5. | 1601cc to 1800cc | 18,750 |
| 6. | 1801cc to 2000cc | 25,000 |
| 7. | 2001cc to 2500cc | 37,500 |
| 8. | 2501cc to 3000cc | 50,000 |
| 9. | Above 3000cc | 62,500] |
Provided that the rate of tax to be collected shall be reduced by 10% each year from the date of first registration in Pakistan.
The tax rates shall be increased by 100 per cent in case of person not appearing on Active Taxpayers List (ATL).
The rate of tax on sale of motor vehicle without first registration:
| S. No. | Engine capacity | Tax |
| (1) | (2) | (3) |
| 1. | Up to 1000cc | Rs. 50,000 |
| 2. | 1001cc to 2000cc | Rs.100,000 |
| 3. | 2001cc and above | Rs.200,000 |
The tax rates shall be increased by 100 per cent in case of person not appearing on Active Taxpayers List (ATL).
The Federal Board of Revenue (FBR) collects advance income tax on private motor vehicles under Section 231B of Income Tax Ordinance, 2001.
