Islamabad, May 11, 2025 – Pakistan has witnessed a significant surge in motor vehicle tax collection, which soared by 58% during the first nine months (July–March) of the ongoing fiscal year 2024-25, according to official data released by the Ministry of Finance.
(more…)Tag: motor vehicle tax
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Punjab Leads Motor Vehicle Tax Collection for Half-Year FY25
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.
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Motor Vehicle Tax Collection Sees 54% Increase in 1QFY25
Karachi, November 15, 2024 – Pakistan has seen a significant surge in motor vehicle tax collection, with a 54% increase in the first quarter (July – September) of the fiscal year 2024-25. According to recent data released by the federal finance ministry, the total collection for this period reached Rs 13.82 billion, up from Rs 8.98 billion in the same quarter of the previous fiscal year.
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Motor Vehicle Tax Rates Updated by Sindh Finance Act 2024
Karachi, July 3, 2024 – The Sindh government has issued updated motor vehicle tax rates under the Sindh Finance Act, 2024. These new rates, applicable from July 1, 2024, aim to standardize the tax regime for both imported and locally manufactured vehicles, reflecting the government’s strategy to balance revenue generation with promoting local automotive industries.
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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.
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Pakistan Collects Rs 16 Billion in Motor Vehicle Tax in 1HFY24
Karachi, February 1, 2024 – Pakistan’s motor vehicle tax collections have reached a noteworthy Rs 16 billion during the first half (July – December) of the fiscal year 2023-24, as revealed by official data released by the federal finance ministry.
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Pakistan Collects Rs 8.98 Billion in Motor Vehicle Tax in 1QFY24
Karachi, November 4, 2023 – Pakistan has successfully collected a substantial amount of Rs 8.98 billion in motor vehicle tax during the first quarter of the fiscal year 2023-24 (July to September).
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Punjab Leads in Motor Vehicle Tax Collection in FY23: Official Stats
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.
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Motor vehicle tax collection declines to Rs24.87 billion in July – March
KARACHI: Collection of motor vehicle tax in Pakistan has declined by 9 percent to Rs24.87 billion during first nine months (July – March) 2022-2023 owing to challenging economic conditions hampering the growth in automotive industry.
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New tax rates on car registration from July 01, 2022
KARACHI: The new rates of advance tax on registration of motor cars have been notified through Finance Act, 2022.
According to PwC A. F. Ferguson & Co. the new rates of advance tax on registration of the motor vehicles are as follows:
READ MORE: Finance Act 2022 notifies tax rates on disposal of securities
Engine Capacity Up to 850cc: old rate Rs. 7,500: new rate Rs. 10,000
Engine Capacity 851cc to 1,000cc: old rate Rs. 15,000: new rate Rs. 20,000
Engine Capacity 1,001cc to 1,300cc: old rate Rs. 25,000: new rate Rs. 25,000
Engine Capacity 1,301cc to 1,600cc: old rate Rs. 50,000: new rate Rs.50,000
Engine Capacity 1,601cc to 1,800cc: old rate Rs. 75,000: new rate Rs. 150,000
READ MORE: Finance Act 2022 revises tax rates for salaried persons
Engine Capacity 1,801cc to 2,000cc: old rate Rs. 100,000: new rate Rs. 200,000
Engine Capacity 2,001cc to 2,500cc: old rate Rs. 150,000: new rate Rs. 300,000
Engine Capacity 2,501cc to 3,000cc: old rate Rs. 200,000: new rate Rs. 400,000
Engine Capacity Above 3,000cc: old rate Rs. 250,000: new rate Rs. 500,000
Where engine capacity is not applicable and value of vehicle is Rs. 5 million or more: old rate Nil: new rate 3 per cent of the import value (as increased by sales tax, customs duty and FED) or invoice value in case of locally manufactured vehicle.
READ MORE: Proposal of final tax regime for commercial importers rejected
The Finance Act, 2022 has also imposed advance tax of Rs. 20,000 on transfer of motor vehicles of unspecified engine capacity (e.g. electric vehicles) having value of Rs. 5 million or more. The said rate of Rs. 20,000 shall be reduced by 10 per cent each year from the date of first registration in Pakistan.
For the purposes of tax collection under section 231B, the definition of ‘motor vehicles’ has been amended and now defined to include car, caravan automobiles, jeep, limousine, pickup, sports utility vehicle, trucks, vans, wagon and any other automobile excluding:
READ MORE: Mechanism revamped for tax dispute resolution
(i) a motor vehicle used for public transportation, carriage of goods and agriculture machinery;
(ii) a rickshaw or a motorcycle rickshaw and
(iii) any other motor vehicle having engine capacity upto 200cc.