Types of Taxes Imposed on Vehicles In Pakistan
In this Post
–Types of Vehicle Taxes In Pakistan
–Rates of Token Tax on Vehicle Registration
–Income Tax Rates on Vehicles in Pakistan
–Rates of Professional Tax on Vehicle Purchase
–Rates of Withholding Tax on Cars
–Rates of Motor Tax in Pakistan
Update (June 27, 2022):
FBR REDUCES CAPITAL VALUE TAX ON VEHICLES FOR FY 2022-23
According to the recently announced finance bill for the fiscal year 2022-23, the Capital Value Tax (CVT) on vehicles has been reduced from 2% to 1% by the Federal Board of Revenue (FBR). Moreover, the CVT will be levied on all cars in the country worth more than PKR 5 million.
A financial transaction in Pakistan, especially one that involves a substantial amount of investment, like buying a property or a vehicle, comes with many legal obligations. And once you own an asset, you have to pay taxes. In one of our posts, we have already discussed different types of property taxes that people pay when buying and selling property. In this blog, we will provide information about different types of vehicle taxes in Pakistan for our readers.
So, let’s begin!
TYPES OF VEHICLE TAXES IN PAKISTAN
Different types of taxes levied on private and commercial vehicles in Pakistan have been listed as under:
- Token Tax
- Income Tax
- Professional Tax
- Withholding Tax (For Registration of a New Vehicle)
- Motor Tax
CURRENT RATES OF TOKEN TAX IN PAKISTAN
For the issuance of a token, which legally certifies a vehicle to be on the road, you need to pay a certain amount of tax annually. Let’s take a look at the current rates of token tax in Pakistan, as per the budget 2019-20.
| Engine Power of Vehicle | Rate of Token Tax (PKR) |
| Motorcycle (One Time Charges) | 1,500 |
| Motor Cars 1000cc | 1,500 |
| 1000 to 1199cc | 1,800 |
| 1200 to 1299cc | 1,800 |
| 1300cc | 1,800 |
| 1301 to 1499cc | 6,000 |
| 1500cc | 6,000 |
| 1501 to 1599cc | 9,000 |
| 1600 to 1999cc | 9,000 |
| 2000cc | 9,000 |
| 2001 to 2500cc | 12,000 |
| Above 2500cc | 15,000 |
RATES OF INCOME TAX ON VEHICLE REGISTRATION IN PAKISTAN
There is a certain percentage of income tax that you have to pay when you own a vehicle. The rate of income tax on vehicle registration in Pakistan varies in the case of a filer and a non-filer.
| Engine Power of Vehicle | For Filers (PKR) | For Non-Filers (PKR) |
| Motor Cars 1000cc | 10,000 | 20,000 |
| 1000 to 1199cc | 1,500 | 3,000 |
| 1200 to 1299cc | 1,750 | 3,500 |
| 1300cc | 2,500 | 5,000 |
| 1301 to 1499cc | 2,500 | 5,000 |
| 1500cc | 3,750 | 7,500 |
| 1501 to 1599cc | 3,750 | 7,500 |
| 1600 to 1999cc | 4,500 | 9,000 |
| 2000cc | 10,000 | 20,000 |
| 2001 to 2500cc | 10,000 | 20,000 |
| Above 2500cc | 10,000 | 20,000 |
PROFESSIONAL TAX
The rate of professional tax remains the same for all types of vehicles mentioned above.
Rate of Professional Tax: PKR 200
WITHHOLDING TAX RATES ON MOTOR REGISTRATION IN PAKISTAN
Let’s take a look at the current rates of withholding tax in Pakistan levied on the registration of vehicles (for filers and non-filers).
| Engine Power of Vehicle | For Filers (PKR) | For Non-Filers (PKR) |
| up to 850cc | 7,500 | 15,000 |
| 851 to 1000cc | 15,000 | 30,000 |
| 1001 to 1300cc | 25,000 | 50,000 |
| 1301 to 1600cc | 50,000 | 100,000 |
| 1601 to 1800cc | 75,000 | 150,000 |
| 1801 to 2000cc | 100,000 | 200,000 |
| 2001 to 2500cc | 150,000 | 300,000 |
| 2501 to 3000cc | 200,000 | 400,000 |
| over 3000cc | 250,000 | 450,000 |
MOTOR TAX RATES ON VEHICLES IN PAKISTAN
One of the most essential types of vehicle taxes in Pakistan is the motor tax. It may differ for private and commercial vehicles. For details regarding the on-going rates of motor tax in Pakistan, refer to the table below.
Rates of Motor Tax for Commercial Vehicles in Pakistan
| Engine and Loading Capacity of Motor Vehicles | Rate of Motor Tax |
| Vehicles with loading capacity up to 4060 kg | PKR 1,000/- |
| Vehicles with loading capacity above 4060 Kg less than 8120 Kg | PKR 2,200/- |
| Vehicles with loading capacity above 8120 Kg less than 12000 Kg | PKR 4,000/- |
| Vehicles with loading capacity above 12000 Kg less than 16000 Kg | PKR 6,000/- |
| Vehicles with loading capacity above 16000 Kg | PKR 8,000/- |
Rates of Motor Tax for Private Vehicles in Pakistan
| Rates of Motor Tax on Private Vehicles | Motor Tax (Per Seat Charges) |
| Hatchbacks, Sedans, and SUVs | PKR 2,500/- |
| Buses and Station Wagons (Specified for Private Use) | PKR 300/- |
Note: The above-mentioned rates of motor tax in Pakistan are charged annually for all types of vehicles in private and commercial categories.
Quick Info: Upon seeing the above tables that include all the important taxation data and rates, you will have an idea that is if you become a tax filer in Pakistan, you may be exempted or required to pay a lower amount of taxes than a non-filer. Along with it, there are many other benefits of being a tax filer in Pakistan.
Meanwhile, you can also read about the vehicle transfer process in Karachi and Islamabad if you live in any of these cites. You can also read a couple of our blogs to get to know more about car loan rates and car insurance policies in Pakistan.
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