Karachi, August 19, 2023 – Punjab has emerged as the frontrunner in the collection of motor vehicle tax for the fiscal year 2022-23, as per recent official statistics released by the federal finance ministry of Pakistan.
According to the report, Punjab raked in an impressive Rs 18.65 billion in motor vehicle tax during the fiscal year 2022-23, securing the top spot in this category. In contrast, Sindh ranked second with a collection of Rs 10.34 billion. Khyber Pakhtunkhwa and Balochistan followed with collections of Rs 1.68 billion and Rs 833 million, respectively, during the same fiscal year.
Despite Punjab’s remarkable performance, the cumulative motor vehicle tax collection for all provinces during FY23 was reported at Rs 31.71 billion. This figure is notably 12.45 percent lower than the previous fiscal year’s collection of Rs 36.22 billion.
Market experts have attributed this decline in motor vehicle tax collection to the challenges faced by the automotive industry in Pakistan. During the fiscal year 2022-23, Pakistan witnessed a staggering 55 percent decrease in sales of locally assembled cars.
Data released by the Pakistan Auto Manufacturers Association (PAMA) on Tuesday revealed that car sales plummeted to 126,879 units during FY23, a stark contrast to the 279,267 units sold in the preceding fiscal year. Analysts at Topline Securities have pinpointed several factors contributing to this drastic decline in car sales, including the unavailability of Completely Knocked Down (CKD) parts, which are essential components imported from other countries and assembled in Pakistan to manufacture cars.
The provincial rankings in motor vehicle tax collection highlight Punjab’s dominance in this sector, but the overall decrease in collections serves as a stark reminder of the challenges currently faced by the Pakistani automotive industry. Observers are keen to see how the industry adapts and recovers in the coming fiscal year.