A Guide to Vehicle Taxes in Pakistan

The number of vehicles on roads is increasing year on year as auto-financing through banks has made owning a vehicle easier. The data shows that auto-financing in Pakistan had reached 353.64 billion PKR in November of 2021. Data shared by the All Pakistan Automotive Manufacturers Association (APAMA) shows that vehicle sales have grown 96 percent in December 2021 when compared to December 2020. Therefore, Graana.com, Pakistan’s smartest property portal, takes a look at the tax on cars in Pakistan.

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Taxes Applicable on Vehicles in Pakistan


A silhouette of a car with tax stamped on it to show tax on cars


The following are some of the taxes charged on private and commercial vehicles in Pakistan:

  1. Income Tax
  2. Token Tax
  3. Withholding Tax
  4. Motor Tax
  5. Professional Tax


Income Tax on Cars in Pakistan

When you own a vehicle, you must pay a set percentage of your income tax. In Pakistan, the rate of income tax on vehicle registration varies, depending on whether you file or not.


Engine CapacityFilers (PKR)Non-Filers (PKR)
Below 1000cc10,00020,000
1000-1199 cc1,5003,000
1200-1299 cc1,7503,500
1300 cc2,5005,000
1301-1499 cc2,5005,000
1500 cc3,7507,500
1501-1599 cc3,7507,500
1600-1999 cc4,5009,000
2000 cc10,00020,000
2001-2500 cc10,00020,000
Above 2500 cc10,00020,000


Token Tax on Cars in Pakistan

A particular amount of tax must be paid annually for the issuing of a token that legally certifies a vehicle to be on the road. Let’s take a look at the current token tax rates in Pakistan, as per the 2019-20 budget.


Engine CapacityTax
Below 1000cc1,500
1000-1199 cc1,800
1200-1299 cc1,800
1300 cc1,800
1301-1499 cc6,000
1500 cc6,000
1501-1599 cc9,000
1600-1999 cc9,000
2000 cc9,000
2001-2500 cc12,000
Above 2500 cc15,000


Withholding Tax on Cars in Pakistan

Let’s have a look at the current rates of withholding tax in Pakistan on automobile registration (for filers and non-filers).


Engine CapacityFilerNon-Filer
Below 850 cc7,50015,000
851-1000 cc15,00030,000
1001-1300 cc25,00050,000
1301-1600 cc50,000100,000
1601-1800 cc75,000150,000
1801-2000 cc100,000200,000
2001-2500 cc150,000300,000
2501-3000 cc200,000400,000
Above 3000 cc250,000450,000


Motor Tax on Cars in Pakistan

The motor tax is one of the most important type of car tax in Pakistan. It may vary between private and commercial cars. The table below contains information on the current motor tax rates in Pakistan.


Motor Tax for Commercial Vehicles


Tax on cars in pakistan


Details of motor tax charged from commercial vehicles in Pakistan are given below:


Loading CapacityTax
Upto 4060 kg1,000
4060-8120 kg2,200
8120-12000 kg4,000
12000-16000 kg6,000
Above 16000 kg8,000


Motor Tax for Private Vehicles


A queue of private vehicles


details of motor tax charged from private vehicles in Pakistan are given below:


Type of VehicleTax
Hatchback, Sedan, SUV2,500
Bus, Station Wagon300


Professional Tax on Cars in Pakistan

The professional tax rate remains the same for all of the vehicles indicated above.

Professional Tax Rate: PKR 200


Federal Budget 2022-23


Calculator placed on balance sheets with budget written on top


Non-filers are subject to a 200 percent advance tax on the purchase of autos with engine displacements greater than 1600cc.

This decision is expected to have an impact on the demand for a variety of vehicles in Pakistan. Customers will have to pay the following advance tax for locally produced ‘luxury cars’:


New Rates for Advance Tax in Federal Budget 2022-23
VehicleEngine Capacity (cc)Previous TaxNew Tax
Corolla AltisBelow 1,800150,000300,000
Hyundai ElantraBelow 2,000200,000400,000
Hyundai TucsonBelow 2,000200,000400,000
Hyundai SonataBelow 2,000200,000400,000
DFSK GloryBelow 1,800150,000300,000
Kia SportageBelow 2,000200,000400,000
BAIC BJ40Above 2,000200,000400,000
Hyundai Sonata 2.5Below 2,500300,000600,000
Kia SorentoBelow 2,400300,000600,000
Toyota Fortuner2,700-2,800400,000800,000
Toyota HiluxBelow 2,800400,000800,000
Isuzu D-Max3,000400,000800,000
Kia Sorento V6Below 3,500450,000900,000


Although this tax will have no direct effect on the price tags, it will raise the entire cost of owning these vehicles. It will also help the government collect more taxes from people belonging to the higher socio-economic class and bring them into the tax net.

The government intends to maintain the auto sector’s existing progress while also urging the industry to completely indigenize car and component production. Get to know Popular driving schools in Islamabad

For more information on taxes in Pakistan, visit our blog.

Read More:
Calculate and Pay Vehicle Token Tax Online in Punjab
Property Tax in Pakistan 2019 – 2022
How to Apply for Driving License in Pakistan
Rolls Royce in Pakistan

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