Sindh Excise and Taxation (E&T) department released information regarding motor vehicle tax and professional tax collection from July 2021 until January 2022. According to the details, the department has collected over Rs. 6.8 billion worth of motor vehicle taxes during Financial Year (FY) 2021.
The breakdown of the taxes collected from all cities is as follows:
|Cities||Taxes Collected (Rs.)|
|Shaheed Benazirabad||49.907 Million|
|Mirpur Khas||36.492 Million|
As evident in the table, the E&T department collected a major chunk of vehicle tax from Karachi, which is appropriate as it is the biggest car market in Pakistan.
Tax Rate Revision
Sindh E&T department had recently doubled motor vehicle taxes as per the Finance (Supplementary) Act 2022. The new tax rates are as follows:
- Tax on cars with engines over 1000cc has been hiked from Rs. 50,000 to Rs. 100,000
- Tax on cars with engines between 1001cc and 2000cc has been raised to Rs. 200,000
- Tax on cars with engines above 2001cc has been increased to Rs. 400,000.
The taxes have been revised to enable the localization of vehicles and to mitigate auto sector imports. This step, however, has now rendered buying a small vehicle difficult for the common man.