close
Thursday July 18, 2024

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
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.

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.