How much tax on a 1300cc car worth PKR 5,000,000?
PKR 75,000 for a filer — 1.5% of PKR 5,000,000, because 1300cc falls in the 1,001cc to 1,300cc band. Someone not on the Active Taxpayers List pays PKR 225,000.
Selling a 1600cc car three years after it was first registered: the transfer amount of PKR 12,500 is reduced by 30%, to PKR 8,750 for a filer and PKR 26,250 for a non-filer.
Tax on buying or registering a vehicle, 2026-27
Collected by the manufacturer when it sells the vehicle, or by the Excise and Taxation office at registration — once, not both (section 231B(4)).
| Engine capacity | Filer | Non-filer |
|---|---|---|
| Up to 850cc | 0.5% | 1.5% |
| 851cc to 1,000cc | 1% | 3% |
| 1,001cc to 1,300cc | 1.5% | 4.5% |
| 1,301cc to 1,600cc | 2% | 6% |
| 1,601cc to 1,800cc | 3% | 9% |
| 1,801cc to 2,000cc | 5% | 15% |
| 2,001cc to 2,500cc | 7% | 21% |
| 2,501cc to 3,000cc | 9% | 27% |
| 3,001cc and above | 12% | 36% |
| Electric, worth PKR 5,000,000 or more | 3% | 9% |
Tax on transferring a vehicle
Reduced by 10% for each year since first registration in Pakistan, and nothing from the fifth year. Up to 850cc, no transfer tax is collected.
| Engine capacity | Filer | Non-filer |
|---|---|---|
| Up to 850cc | Nil | Nil |
| 851cc to 1,000cc | PKR 5,000 | PKR 15,000 |
| 1,001cc to 1,300cc | PKR 7,500 | PKR 22,500 |
| 1,301cc to 1,600cc | PKR 12,500 | PKR 37,500 |
| 1,601cc to 1,800cc | PKR 18,750 | PKR 56,250 |
| 1,801cc to 2,000cc | PKR 25,000 | PKR 75,000 |
| 2,001cc to 2,500cc | PKR 37,500 | PKR 112,500 |
| 2,501cc to 3,000cc | PKR 50,000 | PKR 150,000 |
| 3,001cc and above | PKR 62,500 | PKR 187,500 |
| Electric, worth PKR 5,000,000 or more | PKR 20,000 | PKR 60,000 |
A new car registered by someone who bought it from its first buyer before registration pays a separate amount under section 231B(2A): PKR 100,000 (Up to 1,000cc), PKR 200,000 (1,001cc to 2,000cc), PKR 400,000 (2,001cc and above) for a filer, three times that otherwise.
Income tax collected with token tax
Collected with the provincial motor vehicle tax, every year or as a lump sum, and stopped for a motor car used for more than ten years in Pakistan.
| Engine capacity | Every year | Lump sum |
|---|---|---|
| Up to 1,000cc | PKR 800 | PKR 10,000 |
| 1,001cc to 1,199cc | PKR 1,500 | PKR 18,000 |
| 1,200cc to 1,299cc | PKR 1,750 | PKR 20,000 |
| 1,300cc to 1,499cc | PKR 2,500 | PKR 30,000 |
| 1,500cc to 1,599cc | PKR 3,750 | PKR 45,000 |
| 1,600cc to 1,999cc | PKR 4,500 | PKR 60,000 |
| 2,000cc and above | PKR 10,000 | PKR 120,000 |
All of these are adjustable advance tax, credited against your income tax when you file. The filer vs non-filer calculator shows what not being on the list costs on other transactions.
Vehicle tax FAQs
A percentage of the car’s value set by engine capacity: 0.5% up to 850cc, 1% to 1000cc, 1.5% to 1300cc, 2% to 1600cc, 3% to 1800cc, 5% to 2000cc, 7% to 2500cc, 9% to 3000cc and 12% above that. Value means the invoice price including all duties and taxes, or for an import the customs value plus duty, FED and sales tax.
If you are not on the Active Taxpayers List the rate is three times higher - the Tenth Schedule increases section 231B by 200%.
Yes. The fixed transfer amount is reduced by ten percent each year from the date the vehicle was first registered in Pakistan, and none is collected on a transfer five years or more after that date. The Ordinance does not spell out how the ten percent is applied; this calculator takes 10% of the full amount off for each completed year and shows the compounding reading where it differs.
It is adjustable advance tax (sections 231B(5) and 234(5)), so it counts towards your income tax for the year when you file your return. If more tax was collected than you owe, the excess can be claimed as a refund.
Not at 200cc or below. Section 231B(7) excludes any vehicle with engine capacity up to 200cc, and also rickshaws and vehicles used for public transport, carrying goods or agriculture. A motorcycle above 200cc is a motor vehicle for section 231B and falls in the lowest band.
Where a vehicle has no engine capacity and is worth PKR 5 million or more, the tax is 3% of its value when bought and PKR 20,000 on transfer. The Ordinance gives no rate for an electric vehicle worth less than that, so this calculator does not estimate one.
Yes - section 234 adds an advance tax to the provincial motor vehicle tax, from PKR 800 a year up to 1000cc to PKR 10,000 from 2000cc, or a larger lump sum where the provincial tax is paid that way. None is collected on a motor car used for more than ten years in Pakistan.
Sources and updates
Income Tax Ordinance 2001, amended up to 30 June 2026: sections 231B and 234; First Schedule, Part IV, Division VII (as substituted by the Finance Act 2024) and Division III; Tenth Schedule, rule 1 and its first proviso.
- Income Tax Ordinance 2001, amended up to 30 June 2026 — Federal Board of Revenue (FBR). The full text of the law, including the First Schedule rate tables (PDF).
- Withholding Income Tax Rate Card, Tax Year 2027 — Federal Board of Revenue (FBR). Every withholding rate after the Finance Act 2026, with filer and non-filer rates (PDF).
- Active Taxpayer List (ATL) — Federal Board of Revenue (FBR). Check filer status and download the current ATL.
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Tax Pakistan is an independent site, not part of FBR or any government body. Where a figure matters — a return, a refund claim, a dispute — confirm it against the official source or with a tax adviser.