ISLAMABAD: According to ARY News, the coalition government has raised the advance tax on cars with engines of 1600CC or more.
Details show that the government led by the PML-N has released the fiscal budget for 2022–23. In the new budget, the government has doubled the tax on cars with engines of 1600CC or more.
Miftah Ismail said in the National Assembly: “It is proposed to raise the advance tax on motor vehicles with more than 1600cc as part of our plan to shift the tax burden to the rich.”
“Furthermore, hybrid and electric vehicles with a high value will also have to pay an advance tax of 2% of their value,“ he said.
The finance minister also said, “In addition, the tax rate for people who don’t file taxes will go up from 100% to 200%.”
Under the new budget, a driver with a car that has up to 850cc would have to pay a “registration tax” of Rs10,000.
The tax is Rs20,000 for cars with more than 850cc but less than 1000cc, and Rs25,000 for cars with between 1001cc and 1300cc. But if a person buys a car with a capacity of more than 1300cc, the tax amount will exactly double.
The government has put a tax of Rs 50,000 on cars with engines ranging from 1301cc to 1600cc. The tax for cars with engines ranging from 1601cc to 1800cc is Rs 150,000.
People who want expensive and high-end options above 1800 cc will continue to pay more in registration tax.
The Finance Bill said, “Provided that engine capacity is not relevant and the value of the vehicle is Rs 5 million or more, the rate of tax that can be collected shall be 3% of the import value.”
