ISLAMABAD – The federal government has decided to receive advance income tax on the purchase and registration of vehicles on the basis of vehicle price instead of engine capacity.
The proposal was laid forth by Finance Minister Muhammad Aurangzeb while presenting the budget for next fiscal year 2024-25.
The decision has been taken in view of the increasing vehicle prices in Pakistan. Currently, the tax is calculated on the basis of the engine capacity for vehicles up to 2000cc.
If the proposal is approved, it would jack up the registration cost and prices of the vehicles in the country, where the car prices are already comparatively higher.’
Aurangzeb unveiled federal budget for the fiscal year 2024-25 with a total outlay of over Rs18.877 trillion in the National Assembly amid rumpus from the opposition benches.
The budget is presented at a time when Pakistan is in talks with the International Monetary Fund (IMF) for a loan package ranging between $6 billion to $8 billion.
