The federal government is planning to impose higher advance taxes on luxury vehicles in upcoming budget 2025-26.
Sources told ProPakistani that the Federal Board of Revenue (FBR) has finalized its proposals and submitted them to the International Monetary Fund (IMF).
Currently, the withholding tax on vehicles is 2 percent of the total value for those with engine capacities between 1,300cc and 1,600cc; 3 percent for 1,601cc to 1,800cc; 5 percent for 1,801cc to 2,000cc; 7 percent for 2,001cc to 2,500cc; 9 percent for 2,501cc to 3,000cc; and 12 percent for vehicles above 3,000cc.
The move builds on last year’s shift to a value-based taxation model that replaced fixed advance taxes with levies linked to vehicle prices across all categories.
The latest measure aims to raise billions more in the upcoming fiscal year, as tax coverage expands to include smaller engine variants now reclassified as premium.
The FBR collected more than Rs. 4 billion in withholding taxes from all vehicle segments in 2024, with officials projecting significant revenue growth after the new brackets take effect.
While tightening restrictions on luxury gasoline vehicles, the government is taking a softer approach toward cleaner technologies.
Authorities have decided to maintain reduced sales tax rates for locally assembled hybrid electric vehicles (HEVs) through June 2026.
The current structure—8.5 percent for hybrids up to 1,800cc and 12.75 percent for those between 1,801cc and 2,500cc—will remain unchanged.
no matter how much these beggars collect they will never let the treasury fill because beggars just cant help themselves except beg.
ha ha ha, Loser Endian.
You know what is worse than being a beggar? Losing to a beggar! : D : D
The govt is collecting taxes on everything from the hapless public . Every sector is in doldrums. Yet govt officials are brazenly wasting taxpayers money .luxury suvs with green number plates are used for shopping picnics etc and no one can say anything
Fbr only increasing the tax not widening the tax net. This is a complete failure, such things always going to happen when you appoint incompetent and corrupt people on higher posts.
It’s not thier fault but those who took control of this country “jaag Pakistan Jaag”
A time will come when they start ripping aur skins and bones but the nation will keep sleeping and let this happen. Jaag Pakistan
1lac ki cheez more then 40 lac se zada sale ho rahi hai due to 42% to 45% aur yeh teen dhaabe per aur tax laga rahay hai. Toyota indus motor head said 90lac is the cost of Fortuner and 1.40 Crore is the GOVT tax more then cost se zada ka tax hai.
Dollar is the Lollipop for increasing pricing of TEEN DABBA. Actual in k fazool k tax hai. Apne RUPEE ki value khud kharab kar rhay hai RIP to our F policy makera
Below 1300cc …no mention?
They are planning to decrease the taxes there..kindly add those details for complete picture of what’s maybe upcoming ..
Most of citizens already don’t have such purchasing power to buy a car.
Policies of our government is making even more harder for those who are planning to buy car.
These policy makers are enjoying all luxuries on expenses of this nation but couldn’t think to solve problems of public.