A Quick Guide for (Filers vs. Non-Filers)
Owning a car in Pakistan comes with annual token taxes, but the amount you pay depends on your car’s engine capacity and your tax filing status. This article provides a clear breakdown of the current token tax rates 2025 for private motor vehicles, highlighting the difference between filers and non-filers.
Who is a Filer and Non-Filer?
- Filer: An individual who has registered with the Federal Board of Revenue (FBR) and submits their tax returns regularly.
- Non-Filer: An individual who hasn’t registered with the FBR or hasn’t submitted tax returns.
Token Tax Rates (PKR):
Advance tax on private motor vehicles is calculated based on engine capacity (cc) and tax filer status.
For filers, vehicles up to 1000cc are taxed at Rs. 800, while non-filers pay Rs. 1600. T
ax brackets progressively increase for higher engine capacities, with the highest tax of Rs. 10,000 for filers and Rs. 20,000 for non-filers applied to vehicles with 2000cc and above engines.
Advance tax on passenger transport vehicles is determined by the vehicle’s seating capacity and whether it is air-conditioned.
Vehicles with 4-9 passengers incur a tax of Rs. 500 for non-AC and Rs. 1000 for AC models.
For 10-19 passengers, the tax is Rs. 1500 and Rs. 2000 respectively.
Vehicles carrying 20 or more passengers are taxed at Rs. 2500 for non-AC and Rs. 4000 for AC variants.
Key Takeaways:
- Filing your taxes benefits you! Filers generally pay significantly lower token taxes compared to non-filers.
- The difference in tax rates can be substantial, especially for higher engine capacities.
- Timely filing of tax returns can save you money on your annual token tax.
Remember:
- These are the base token tax rates. Additional taxes or fees may apply depending on your vehicle’s registration location and purpose.
- It’s recommended to consult the relevant provincial excise and taxation department for the most up-to-date information specific to your region.
Considering buying a car? Factor in the token tax when calculating the total ownership cost. Are you a non-filer? Consider filing your taxes to potentially enjoy lower token tax rates in the future.
I am a filer but when i calculate token tax on line in ICT app i get full tax (normal) for my car. why not tax amount for a filer person? For example annual token tax for my car is 4000 and the same is calculated for me along with 2500 income tax