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.) |
Karachi | 6,336.949 Million |
Hyderabad | 258.550 Million |
Sukkur | 116.915 Million |
Shaheed Benazirabad | 49.907 Million |
Larkana | 62.085 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.
Sindh E&T department had recently doubled motor vehicle taxes as per the Finance (Supplementary) Act 2022. The new tax rates are as follows:
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.