Motor Vehicle Tax Collections Reach Rs 25 Billion in 9MFY24

Motor Vehicle Tax Collections Reach Rs 25 Billion in 9MFY24

Islamabad, May 5, 2024 – Pakistan has seen a modest rise in motor vehicle tax collections, reaching Rs 25 billion during the first nine months of fiscal year 2023-24, according to the latest data released by the federal finance ministry.

This marks a slight increase from the Rs 24.87 billion collected in the same period of the previous fiscal year.

This year’s collection is distributed unevenly among the provinces, with Punjab leading the way. Punjab recorded a 3 percent increase in its motor vehicle tax collection, totaling Rs 15 billion, up from Rs 14.58 billion in the same period last year. This growth reflects the province’s ongoing efforts to enhance revenue collection through improved compliance and enforcement measures.

Conversely, Sindh witnessed a decline in its collections, with motor vehicle tax revenues falling by 5 percent to Rs 7.86 billion, down from Rs 8.28 billion in the prior year. The drop in Sindh points to broader economic challenges and perhaps a need for refined strategies in tax collection within the province.

Meanwhile, Khyber Pakhtunkhwa showed a notable improvement, posting a 9.7 percent growth in motor vehicle tax revenues. The province collected Rs 1.48 billion during the period from July 2023 to March 2024, compared to Rs 1.34 billion in the same period of the previous fiscal year. This increase can be attributed to the province’s proactive fiscal policies and improvements in administrative efficiency.

Balochistan also recorded significant growth, with a 10.23 percent increase in motor vehicle tax collections, reaching Rs 743 million, up from Rs 674 million in the corresponding months of the last fiscal year. This growth is indicative of Balochistan’s efforts to enhance its revenue-generating capabilities and better manage its fiscal resources.

The overall increase in motor vehicle tax collection across Pakistan reflects a gradual strengthening of the tax infrastructure and a commitment to bolstering provincial revenues. It also highlights the variances in economic activities and tax collection efficiencies across different provinces.

These figures are crucial for assessing the financial health of the provinces and the effectiveness of their tax collection mechanisms. As Pakistan continues to navigate economic challenges, effective and efficient tax collection remains essential for ensuring fiscal stability and funding critical public services and infrastructure projects. The data not only underscores the need for ongoing reforms in tax policies but also reflects the diverse economic dynamics across the country.