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Pakistan Shifts to Value-Based Vehicle Tax System New Rates Effective July 1, 2024

Pakistan Shifts to Value-Based Vehicle Tax System New Rates Effective July 1, 2024

This change marks a shift from a fixed tax rate to a value-based tax system, as outlined in the Finance Bill 2024-25.

IMF says budget 2024 approval ‘not enough’ and demands Pakistan to ‘Do more’

Under the new tax regime introduced in budget 2024-25, the tax on vehicles is no longer a fixed amount but varies according to the vehicle’s value.

For vehicles up to 850cc, the tax rate is now 0.5%, replacing the previous fixed tax of Rs10,000.

Vehicles ranging from 851 to 1000cc will be taxed at 1%, instead of the former fixed tax of Rs20,000.

Vehicles between 1001 and 1300cc will be charged a 1.5% tax rate against the previous Rs25,000 fixed tax.

Vehicles from 1301 to 1600cc will be taxed at 2%, instead of the previous fixed tax of Rs50,000.

For vehicles ranging from 1601 to 1800cc, the tax rate is now 3%, up from the previous fixed tax of Rs150,000.

Vehicles between 1801 and 2000 will face a 5% tax rate against an earlier fixed tax of Rs200,000.

For vehicles from 2001 to 2500cc, the tax rate has been increased from 1% to 7 percent.

Vehicles in the 2501 to 3000cc range will now be taxed at 9%, up from the previous 1% increase.

The new tax rates have been enforced across Pakistan from today (July 1).

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