Karachi, January 29, 2026 — The Federal Board of Revenue (FBR) has ramped up its monitoring of Pakistan’s wealthy elite as luxury car sales skyrocket by a staggering 73% in the first half of fiscal year 2025-26.
According to sources, the FBR has directed provincial motor registration authorities and car manufacturers to provide full details of buyers, specifically for vehicles with engine capacities of 1300CC and above, in a bid to ensure that high-end purchases align with declared incomes.
A recent report by Arif Habib Limited (AHL) revealed that luxury car sales surged to 35,404 units, compared to 20,491 units during the same period last year. The dramatic rise indicates that Pakistan’s affluent class is splurging on high-end vehicles, prompting the FBR to scrutinize their sources of wealth.
Interestingly, sales of smaller cars also showed growth, with 1000CC vehicles increasing 10% and those below 1000CC rising 18%, signaling overall strength in the automobile market.
The FBR has reported that collections from withholding tax on new car sales jumped 51%, reaching Rs 16.67 billion, up from Rs 11 billion in the corresponding period last year. Officials emphasize that the move is part of a broader effort to enforce transparency and curb tax evasion among high-income individuals.
Under the Income Tax Ordinance, 2001, motor registration authorities and car manufacturers are mandated to provide complete buyer information, ensuring that lavish purchases are backed by legitimate and declared incomes.
As Pakistan’s luxury car market accelerates at record speed, the FBR’s intensified surveillance highlights a growing crackdown on the country’s richest citizens, leaving many wondering who will next face scrutiny.