WHAT IS TAX OF VEHICLES IN PUNJAB PAKISTAN?

In Punjab, vehicle-related taxes are administered by the Excise, Taxation and Narcotics Control Department under the Motor Vehicle Ordinance, 1965 and the Motor Vehicle Tax Act, 1958. These taxes generate significant revenue for the provincial government and include token tax, withholding tax, professional tax, and capital value tax (CVT). Vehicle tax obligations differ based on engine capacity, ownership status, and whether the taxpayer is on the FBR Active Taxpayer List (ATL).

Methods of Payment

  • Online via ePay Punjab App or FBR’s e-portal

  • Designated bank branches using printed challans

  • Excise and Taxation Offices across Punjab

Token Tax (Motor Vehicle Tax – MVT) and Professional Tax

Vehicle Engine Capacity Token Tax (MVT) Filer Non-Filer Professional Tax
Motorcycle (new reg.) PKR 1,500 PKR 200
Up to 1000cc PKR 15,000 PKR 10,000 PKR 20,000 PKR 200
1001–1199cc PKR 1,800 PKR 1,500 PKR 3,000 PKR 200
1200–1299cc PKR 1,800 PKR 1,750 PKR 3,500 PKR 200
1300cc PKR 1,800 PKR 2,500 PKR 5,000 PKR 200
1301–1499cc PKR 6,000 PKR 2,500 PKR 5,000 PKR 200
1500cc PKR 6,000 PKR 3,750 PKR 7,500 PKR 200
1501–1599cc PKR 9,000 PKR 3,750 PKR 7,500 PKR 200
1600–1999cc PKR 9,000 PKR 4,500 PKR 9,000 PKR 200
2000cc PKR 9,000 PKR 10,000 PKR 20,000 PKR 200
2001–2500cc PKR 12,000 PKR 10,000 PKR 20,000 PKR 200
2500cc and above PKR 15,000 PKR 10,000 PKR 20,000 PKR 200

Capital Value Tax (CVT) on Motor Vehicles

  • Imposed on vehicles with engine capacity above 1300cc

  • Tax rate: 1% of the vehicle’s value (as per Excise’s valuation tables)

  • Tax Period: 5 years from the fiscal year of first registration

  • Depreciation: Annual deduction of 10% in vehicle value

  • Exemption: After 6 years, no CVT is applicable

Withholding Tax on Vehicle Registration (Effective FY 2025)

Applies at the time of first registration or transfer of ownership. Rates vary based on engine size and taxpayer status.

Engine Capacity Filer Non-Filer
Up to 850cc PKR 10,000 PKR 30,000
851–1000cc PKR 20,000 PKR 60,000
1001–1300cc PKR 25,000 PKR 75,000
1301–1600cc PKR 50,000 PKR 150,000
1601–1800cc PKR 150,000 PKR 450,000
1801–2000cc PKR 200,000 PKR 600,000
2001–2500cc PKR 300,000 PKR 900,000
2501–3000cc PKR 400,000 PKR 1,200,000
Above 3000cc PKR 500,000 PKR 1,500,000

Important Notes

  • Filing status as Filer or Non-Filer significantly affects tax liabilities

  • Registration or transfer of vehicles cannot proceed unless taxes are paid

  • Withholding tax paid at registration is adjustable against annual income tax liability

  • Non-filers also face restrictions on purchasing certain categories of vehicles

Scroll to Top