Islamabad, February 16, 2025 – The province of Punjab has emerged as the leader in motor vehicle tax collection among all provinces in Pakistan during the first half of the fiscal year 2024-25.
According to the latest data released by the federal finance ministry, Punjab collected a remarkable Rs 14.68 billion from July to December 2024. This figure represents a substantial 50.56% increase compared to Rs 9.75 billion collected during the same period in the previous fiscal year.
The overall motor vehicle tax collection in Pakistan also witnessed significant growth, surging by 56.55% to reach Rs 25.08 billion in the first half of FY25. This marks a notable rise from the Rs 16.02 billion collected in the corresponding months of the previous fiscal year.
Economic analysts have attributed this sharp increase in tax collection to a rise in vehicle sales during the review period. Additionally, the substantial hike in vehicle prices contributed significantly to the higher tax revenues. The province of Punjab, being a major hub for automobile transactions, played a pivotal role in driving this upward trend.
Although Punjab led in absolute figures, Sindh recorded the highest percentage increase in tax collection. The province posted a growth rate of 77%, collecting Rs 8.41 billion during the first half of FY25, compared to Rs 4.75 billion in the same period last year.
Meanwhile, Khyber Pakhtunkhwa reported a 35.24% growth in motor vehicle tax revenue, with collections reaching Rs 1.42 billion, up from Rs 1.05 billion in the previous year. In Balochistan, motor vehicle tax collections rose by 22%, totaling Rs 567 million compared to Rs 465 million collected during the corresponding period last fiscal year.
Punjab’s impressive performance in motor vehicle tax collection underscores the province’s growing economic activity and its significant role in the national revenue framework. With an expanding vehicle market and rising automobile prices, Punjab’s contribution to the national exchequer is expected to remain strong in the coming months. Authorities anticipate continued growth, provided the economic conditions and market trends persist favorably.