The new financial year has introduced higher vehicle tax rates in Pakistan, complicating the purchase of cars.
This year’s budget includes a new regulatory duty on vehicle and spare parts imports, in addition to increased taxes on locally produced vehicles.
For vehicles up to 850 cc, a 5 percent tax now replaces the previous fixed fee of 10,000 PKR. Vehicles between 851 and 1,000 cc will now be subject to a 1 percent tax, instead of the earlier 20,000 PKR fixed amount.
The tax for vehicles between 1,001 and 1,300 cc has changed to 1.5 percent, replacing the former 25,000 PKR fixed amount. Those between 1,301 and 1,600 cc will now incur a 2 percent tax, up from the previous 50,000 PKR.
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Vehicles from 1,601 to 1,800 cc will face a 3 percent tax, increased from the previous 150,000 PKR. For those between 1,801 and 2,000 cc, the new tax rate is 5 percent, up from the former 200,000 PKR.
The tax rate for vehicles between 2,001 and 2,500 cc has risen to 7 percent from the previous 1 percent. Vehicles in the 2,501 to 3,000 cc range will see a 9 percent tax, an increase from the earlier 1 percent.
Finally, vehicles above 3,000 cc will now incur a 12 percent tax, up from the previous 2 percent.
