Islamabad, January 14, 2026 – The Federal Board of Revenue (FBR) reported a dramatic 159% increase in sales tax collections from locally assembled motor cars in the fiscal year 2024-25 compared to FY24, underscoring the growing contribution of the automotive sector to Pakistan’s domestic tax revenues.
According to the FBR, total net domestic sales tax collections reached Rs1.62 trillion in FY25, up 32.4% from FY24, driven by strong performance across multiple key sectors. Motor cars, in particular, contributed Rs34.6 billion to the treasury, compared with Rs13.3 billion in the previous year, highlighting surging consumer demand and higher assembly volumes.
Other major revenue contributors included electrical energy, which generated Rs460.6 billion, and POL products, contributing Rs138.9 billion. Cement and sugar also saw notable growth, with cement collections rising 64.6% to Rs108.7 billion and sugar adding Rs124.8 billion, a 27.7% increase. Machinery, refrigerator parts, and motorcycles also displayed robust growth, reflecting increasing domestic consumption and industrial activity.
The FBR emphasized that while refunds and rebates amounted to Rs404.4 billion, net collections still grew substantially, demonstrating improved compliance and effective revenue administration. Officials said the surge in sales tax from locally assembled vehicles, along with other industrial and energy sectors, plays a critical role in strengthening Pakistan’s fiscal position and supporting government spending initiatives.
This performance highlights the growing importance of the domestic automotive sector as a major contributor to federal revenues, signaling strong investor confidence and expanding consumer markets in Pakistan.