Vehicle owners in Pakistan may soon face higher token taxes under the newly announced federal budget, as the government considers revising annual vehicle taxation rates. According to the proposed changes, cars with engine capacities up to 1,000cc could be subject to a token tax of around Rs. 20,000, marking a significant increase compared to previous rates. The move is part of broader efforts to boost revenue collection and streamline taxation in the automotive sector.
For larger engine vehicles, the tax structure is expected to shift from fixed rates to a value-based system, where the amount will be determined according to the vehicle’s invoice value. This means owners of high-end and luxury cars may see a sharper rise in taxes. The proposed changes have sparked concerns among consumers and auto industry stakeholders, who fear it may increase the overall cost of vehicle ownership across the country.
