Tax Calculator
Important Information
- Filer Benefits: Filers pay significantly lower advance taxes (often 50% or less compared to non-filers).
- Token Tax: This is an annual recurrence. Some smaller cars (under 1000cc) can pay a lifetime token tax.
- Registration Fee: Calculated based on the vehicle's invoice value and engine capacity.
- Late Penalties: Delays in registration beyond 30 days attract heavy penalties (up to PKR 200,000).
1. Vehicle Registration in Pakistan
Vehicle registration in Pakistan is managed by provincial Excise & Taxation departments. The total cost includes a one-time registration fee, a physical number plate fee, and federal advance tax (WHT).
2. Advance Income Tax (Under Section 231B)
The Federal Board of Revenue (FBR) collects advance income tax on the purchase and registration of new vehicles. This tax is adjustable for filers against their annual income tax liability. For non-filers, this tax is mostly a penalty and is significantly higher.
3. Motor Vehicle Token Tax
Every motor vehicle owner is required to pay an annual token tax to keep the vehicle legally on the road. For vehicles up to 1000cc, owners have the option to pay a "Lifetime Token Tax," relieving them of annual payments.
4. Difference between Filer and Non-Filer
The government uses vehicle taxation as a tool to encourage tax filing. Non-filers pay much higher rates for registration, purchase, and even annual token taxes compared to active taxpayers.