Tax on Imported Cars Reduced by 50-80%

The government of Punjab has drastically cut down the taxes on imported vehicles. This move was announced in its Finance Bill presented on Tuesday.

In the revised budget for the fiscal year 2018-19, the government of Pakistan’s largest slashed 50 to 80 per cent of taxes on cars with different engine capacities.

The PTI-led government hopes the move will encourage people to register their imported vehicles in Punjab instead of the federal capital or other provinces.

  • The revised tax for cars from 1,300cc to 1,500cc will now be Rs. 15,000, coming down from Rs. 70,000.
  • Taxes on cars with engine capacity from 1500cc to 2000cc is proposed to be Rs. 25,000. Previously it was 150,000.
  • Furthermore, those wanting to import cars with engine capacities from 2,000cc to 2,500cc will have to pay as much as Rs 100,000, not 200,000.

Importers of the vehicles with engine capacities above 25,00cc did not receive this perk as the government believes these cars are used by the elite and wealthy people who should pay more taxes.

The new finance bill, tabled by the Punjab Finance Minister Hashim Bakht, proposed an increase up to five times in stamp duty on different segments. This move is said to generate an additional amount of Rs. 1 billion in taxes.

The incumbent government has expanded its tax base, and the Punjab Revenue Authority (PRA) has been tasked to collect Rs155.57 billion in this fiscal year. To assist PRA with the target, the insurance sector has also been given under its radar.

The government has proposed to increase PRA’s powers for the seizure of businesses in case of violations.

  • Where is the link to the source of official govt website stating this and when will the new tax get implemented.
    Incomplete articles.

    • Do you really expect government websites to be updated with latest information? Good luck with that.

      Anyways, to answer your question – there has been no news on when it will be implemented as of now. So you’d have to wait, just like everyone else, to know that.

    • The above article is related to “Excise Tax” for the purpose of Annual Tokens for cars,, no way this is related to Import Duties Payable for importing a car,,,,

  • Seems this reduction on tax is related to “Excise & Taxation” for the purposing of getting these cars registered in Punjab instead of Islamabad. Currently there is a trend to get cars registered in Islamabad as the Annual Token Tax payable in Punjab is twice higher compared to Islamabad.

  • Maximum 100k tax on 2500c Enginee or even 200k is not much. But is there any other tax on importing cars?

    I have heard you will have to pay taxes equal to the car price for importing. Can someone clarify it please?

  • Question is this how much tax would be reduce on small 660cc japanese cars because middle class is the largest buyer of these cars.

  • I would like to send car from UK to Pak, but don’t really want to pay high customs rate. IK should reduce customes rate. I would happily pay tax

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