Pakistan Tax

Types of Taxes Imposed on Vehicles In Pakistan

Types of Taxes Imposed on Vehicles In Pakistan

There are many legal obligations associated with a financial transaction in Pakistan, especially one that involves a substantial amount of investment, like buying a house or a vehicle. And once you own an asset, you have to pay taxes on it. We discussed different types of property taxes in one of our previous posts. We will provide information about different types of vehicle taxes in Pakistan in this blog post.

Types of Vehicle Taxes in Pakistan

Tax types levied on private and commercial vehicles in Pakistan include the following:
  • Token Tax
  • Income Tax
  • Professional Tax
  • Withholding Tax (For Registration of a New Vehicle)
  • Motor Tax

Current Rates of Token Tax in Pakistan

An annual tax is required to issue a token, which certifies the legality of a vehicle to be on the road. Here are the current rates of token tax in Pakistan.

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

When you own a vehicle, you must pay a certain percentage of income tax. A non-filer’s income tax rate on vehicle registration differs from that of a filer’s.

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

Regardless of the type of vehicle, the professional tax rate remains the same. Rate of Professional Tax: PKR 200

Withholding Tax Rates on Motor Registration in Pakistan

We will examine the current rates of withholding tax in Pakistan 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

The motor tax is one of the most important types of vehicle taxes in Pakistan. Private and commercial vehicles are subject to different rates. Check out the following table for details on Pakistan's current rates of motor tax.

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/-