Motor Vehicles Tax is an important levy of Excise & Taxation Department. It brings considerable revenue and is another major source of income to the exchequer. It is administered under the provisions of the Motor Vehicle Ordinance, 1965 and Motor Vehicle Tax Act, 1958.
In Pakistan, vehicle taxes can be paid through the following methods:
- Online: You can pay vehicle taxes online using the Federal Board of Revenue’s e-payment portal.
- Bank Challan: You can visit a designated bank, fill out a challan form, and make a payment.
- Excise and Taxation Office: You can visit the local Excise and Taxation Office in your city, where you will be required to fill out a form and make the payment.
Vehicle Tax Rates in Pakistan based on Engine Capacity and Filing Status:
Tax Type: Token Tax MVT Applicable to: Local Vehicles Income Tax (2021-22) and Professional Tax
Filing Status Filer: Taxpayers who have filed their income tax returns
Non-Filer: Taxpayers who have not filed their income tax returns
Tax Rates:
Motorcycles at time of registration:
Filer: PKR 1500
Non-Filer: PKR 200
- Motor Cars: 1000 CC:
Token Tax MVT: PKR 15000
Filer: PKR 10000
Non-Filer: PKR 20000
Professional Tax: PKR 200
- 1000 to 1199 CC:
Token Tax MVT: 1800
Filer: PKR 1500
Non-Filer: PKR 3000
Professional Tax: PKR 200
- 1200 to 1299 CC:
Token Tax MVT: 1800
Filer: PKR 1750
Non-Filer: PKR 3500
Professional Tax: PKR 200
- 1300 CC:
Token Tax MVT: 1800
Filer: PKR 2500
Non-Filer: PKR 5000
Professional Tax: PKR 200
- 1301 to 1499 CC:
Token Tax MVT: 6000
Filer: PKR 2500
Non-Filer: PKR 5000
Professional Tax: PKR 200
- 1500 CC:
Token Tax MVT: 6000
Filer: PKR 3750
Non-Filer: PKR 7500
Professional Tax: PKR 200
- 1501 to 1599 CC:
Token Tax MVT: 9000
Filer: PKR 3750
Non-Filer: PKR 7500
Professional Tax: PKR 200
- 1600 to 1999 CC:
Token Tax MVT: 9000
Filer: PKR 4500
Non-Filer: PKR 9000
Professional Tax: PKR 200
- 2000 CC:
Token Tax MVT: 9000
Filer: PKR 10000
Non-Filer: PKR 20000
Professional Tax: PKR 200
- 2001 to 2500 CC:
Token Tax MVT: 12000
Filer: PKR 10000
Non-Filer: PKR 20000
Professional Tax: PKR 200
- 2500 above:
Token Tax MVT: 15000
Filer: PKR 10000
Non-Filer: PKR 20000
Professional Tax: PKR 200
Capital Value Tax (CVT) Rules:
- The tax is in effect from 1st July 2022
- Applies to all vehicles with engine capacity greater than 1300 cc on every transfer or in the National Registration if not already paid
- The tax period is 5 years, starting from 1-July of the financial year before the date of registration
- After 6 years, the tax will be waived
- The tax rate is 1% of the vehicle’s value
- An annual depreciation of 10% in the vehicle’s value will be considered.
Withholding Tax (New Registration) Policy:
- Effective from 1st July 2022
- Based on engine capacity
- Tax rates for filers and non-filers are different
Tax Rates:
- Engine capacity up to 850 cc: PKR 10,000 (for filers) / PKR 30,000 (for non-filers)
- Engine capacity 851 to 1000 cc: PKR 20,000 (for filers) / PKR 60,000 (for non-filers)
- Engine capacity 1001 to 1300 cc: PKR 25,000 (for filers) / PKR 75,000 (for non-filers)
- Engine capacity 1301 to 1600 cc: PKR 50,000 (for filers) / PKR 150,000 (for non-filers)
- Engine capacity 1601 to 1800 cc: PKR 150,000 (for filers) / PKR 450,000 (for non-filers)
- Engine capacity 1801 to 2000 cc: PKR 200,000 (for filers) / PKR 600,000 (for non-filers)
- Engine capacity 2001 to 2500 cc: PKR 300,000 (for filers) / PKR 900,000 (for non-filers)
- Engine capacity 2501 to 3000 cc: PKR 400,000 (for filers) / PKR 1,200,000 (for non-filers)
- Engine capacity over 3000 cc: PKR 500,000 (for filers) / PKR 1,500,000 (for non-filers)