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/- |