The government has increased the tax rate for all vehicles in the Finance Bill 2023. According to the amended Finance Bill 2023, the tax would be Rs. 10,000 for up to 850cc vehicles.
Similarly, Rs. 20,000 tax would apply on 851cc to 1000cc vehicles, Rs. 25,000 on 1001cc to 1300cc vehicles, Rs. 50,000 on 1301cc to 1600cc vehicles, Rs. 150,000 on 1601cc to 1800cc vehicles, and Rs. 200,000 on 1801cc to 2000cc vehicles.
Furthermore, there will be a 6% tax on the value of vehicles from 2001cc to 2500cc, an 8% tax on the value of vehicles from 2501cc to 3000cc, and 10% on the value of vehicles with engines larger than 3000cc.
According to the amended Finance Bill 2023, Customs would assess the import value of cars with engine capacity above 2001cc and use that to levy Customs Duty, FED, and Sales tax.
Meanwhile, the invoice value inclusive of all duties and taxes would also be applicable on vehicles above 2001c for both Completely Built-up and locally assembled cars.
In cases where engine capacity is not applicable and the value of vehicles is over Rs. 5 million or more, the rate of tax collectible shall be 3% of the import value — including the revised Customs Duty, FED, and Sales tax in case of imported vehicles — or invoice value in case of locally assembled vehicles.
Source: Pro Pakistani