New Fixed Tax for Cars Announced|Rates for Important and Local Cars

A New Fixed Tax for Cars has been announced by the Federal Government and passed the Finance Bill 2023 yesterday. The automobile industry will see huge hikes in the prices of vehicles of all sizes and engine capacity. However, the majority of the new tax will be applied to vehicles that are 2000cc and above.

The new tech imposed will make sure that there is an evil distribution of taxes on the poor as well as the rich. While some may think that the new tax is too much, it is necessary for the betterment of the automobile industry in Pakistan, which has suffered a lot in the previous year or so.

new fixed tax on cars

Here is everything you need to know about the new fixed tax on cars, both imported and local vehicles.

Details of the New Fixed Tax on Cars

  • Vehicles with engine capacities from 2001cc to 2500cc will be taxed at 6% of their value.
  • Vehicles with engine capacities from 2501cc to 3000cc will be taxed at 8% of their value.
  • Vehicles with engine capacities exceeding 3000cc will be taxed at 10% of their value.

Expected Tax Increase on Locally Assembled Cars

List of Cars Variant Engine Capacity CC Ex. Factory Price
Kia Sorento 2.4 AWD 2359 11,300,000
Kia Sorento 2.4 FWD 2359 10,400,000
Hyundai Sonata 12:00 pm 2497 11,280,000
Hyundai Porter (H-100) High Deck 2607 3,829,000
Toyota Fortuner V 2694 18,099,000
Toyota Hilux Revo Revo V Automatic 2.8 2755 14,389,000
Toyota Hilux Revo GR-S 2755 16,149,000
Toyota Hilux Rocco Rocco 2755 15,179,000
Toyota Fortuner Legender 2755 20,129,000
Toyota Fortuner GR-S 2755 21,089,000
Toyota Fortuner 2.8 Sigma 4 2755 19,079,000
Isuzu D-Max V-Cross Automatic 3.0 2999 11,800,000
Kia Sorento 12:00 pm 3479 11,390,000


Read more: MG 4 EV Launched – Price in Pakistan Revealed

Expected New Fixed Tax on Important Cars

The government of Pakistan has announced a new fixed tax on cars with engine capacities exceeding 2001cc. These taxes will be applied to both imported and locally assembled cars.

Import Taxes

For imported cars, the customs department will evaluate the import value of the vehicle. This import value will be used to determine the applicable customs duty, federal excise duty (FED), and sales tax. The import value of a car will be determined based on the following factors:

  • The invoice value of the car
  • The cost of freight and insurance
  • The cost of import duties and taxes

Sales Taxes

For both imported and locally assembled cars, a sales tax of 3% will be applied to the invoice value of the car. This sales tax will be levied by the motor vehicle registering authority at the time of registration.


There are a few exemptions from these taxes. For example, cars with engine capacities below 2001cc are exempt from import taxes. Additionally, cars that are used for government or military purposes are also exempt from the sales tax.

Advance Taxes

Manufacturers of motor vehicles are required to collect advance taxes from buyers at the specified rate during the sale of motor cars or jeeps. The advance tax will be used to offset the sales tax that will be levied at the time of registration.

List of Cars Variant Engine capacity cc Ex. Factory Price
Hyundai Staria 2.2D A/T 2199 8,909,000
Toyota Camry High grade 2487 53,859,000
Toyota Prado TX 2.8 D MT 2755 59,109,000
Toyota Prado TX 2.8 D AT 2755 67,249,000
Kia Grand Carnival Executive 3470 16,750,000
Toyota Land Cruiser ZX 3445 156,829,000
Toyota Coaster 29 Seater F/L 4009 26,789,000


Rabia Tanveer
Rabia Tanveer
Rabia Tanveer is a graduate from Kinnaird College for Women and holds a Bachelors in English Literature. She is a seasoned freelance writer with more than a decade of experience in multiple niches.

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