Value of vehicle, not its engine capacity, to determine tax

According to the Finance Bill 2024-25, up to 800cc, there will be tax of 0.5 per cent of the total value of the vehicle

By Our Correspondent
June 13, 2024
Representational image of cars parked inside a showroom. — PPI/File

ISLAMABAD: The FBR has brought changes in taxation for vehicles and slapped taxes on the basis of the value of vehicles instead of engine capacity.

Advertisement

According to the Finance Bill 2024-25, up to 800cc, there will be tax of 0.5 per cent of the total value of the vehicle. From 851cc to 1000cc, tax will be 1% of the value of the vehicle. For 1001cc to 1300cc, there will be tax rate of 1.5% of the value of the vehicle. For 1301cc to 1600cc, the tax rate of 2% of the value has been imposed.

For 1601cc to 1800cc, the tax rate of 3% of the value of the vehicle has been imposed. For 1801cc to 2000cc, the tax rate of 5% of the value of the vehicle has been slapped. For 2001cc to 2500cc, the tax rate will be 7% of the value of the vehicle. For 2501cc to 3000cc, the tax rate of 9% of the value has been imposed. For above 3000cc, there will be tax rate of 12% of the value.

Advertisement