Motor Vehicle Tax Details 2025

Motor Vehicles Tax is a major levy levied by the Department of Excise and Taxation, which contributes substantially to the government’s revenue. It serves as a major financial source for infrastructure development, road maintenance, and improvements in public transport. The tax is governed by the Motor Vehicles Ordinance, 1965, and the Motor Vehicles Tax Act, 1958, ensuring proper administration and compliance.

Vehicle owners must pay annual or lifetime taxes based on factors such as engine capacity, vehicle type, and usage. Timely tax payment ensures legal compliance, avoids fines, and supports national development. The revenue generated plays a vital role in expanding transportation networks and public services.

 

Motor Vehicle New Registration

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Category	Rate
Motorcycle / Scooter:
Up to 70 cc	PKR. 1,000
71 to 100 cc	PKR. 1,500
101 to 125 cc	PKR. 2,000
126 to 150 cc	PKR. 2,500
Above 150 cc	2% of the vehicle value
Tractors, Trucks, Buses, Rickshaws, and Taxis	1% of the vehicle value
Combined Harvesters, Forklifts, Road Rollers, Excavators, Sewerage Cleaning Plants, Rigs etc.	PKR. 300 each
Others:
Not exceeding 1000 cc	1%
Exceeding 1000 cc but not more than 2000 cc	2%
Exceeding 2000 cc	4%

Rates of Motor Vehicle Tax Transfer Fee in Pakistan

  The transfer fee for vehicles is based on category and engine capacity:

• Motorcycle/Scooter: PKR 550
• Heavy Transport Vehicle (HTV): PKR 5,500
• Cars up to 1000 cc: PKR 2,750
• 1001 cc – 1800 cc: PKR 5,500
• Above 1800 cc: PKR 11,000

Category	Rate
Motorcycle Scooter	PKR 550
Heavy Transport Vehicle HTV	PKR 5500
Others:
Not exceeding 1000cc	PKR 2750
Exceeding 1000cc not more than 1800cc	PKR 5500
Exceeding 1800cc	PKR 11000

Life Time Token tax at the time of transfer

If you transfer a motorcycle within ten years of registration, the fee is Rs. 1,500, with a 10% discount for each year. For cars up to 1000cc, the fee is Rs. 20,000, with the same 10% yearly discount.

Transferring your vehicle on time helps avoid legal issues and makes selling easier. Make sure to complete the process early to save money. You can check the exact fee using an online vehicle tax calculator. Stay updated with the Excise & Taxation Department for the latest rules on vehicle transfers in Pakistan.

Token Tax & Motor Vehicle Tax (MVT) for 2024-25

Token Tax and MVT rates differ for vehicles based on engine capacity. Below are some key rates for the 2024-25 financial year:

• Motorcycles (at registration): PKR 1,500

• Motorcars up to 1000cc: PKR 20,000

• 1001-1199cc: 0.2% of the invoice price

• 1300cc: PKR 6,000

• 1500cc: PKR 6,000

• 2000cc and above: 0.3% of the invoice price or a fixed PKR 15,000 for 2500cc and above.

Professional Tax remains PKR 200 across categories, while Income Tax varies based on vehicle type and engine capacity.

Withholding Tax on New Registration

Withholding Tax (WHT) is applicable at the time of vehicle registration. The tax rate is different for filers and non-filers. For instance:

• Up to 850cc: 0.5% of the value (filers), 1.5% (non-filers)

• 1001-1300cc: 1.5% of the value (filers), 4.5% (non-filers)

• 1601-1800cc: 3% of the value (filers), 9% (non-filers)

• Above 3000cc: 12% of the value (filers), 36% (non-filers)

A 10% depreciation is applied annually on the vehicle’s value for tax calculations.

Capital Value Tax (CVT)

CVT applies to all vehicle categories above 1300cc on every transfer or if not already paid. It is calculated at 1% of the vehicle’s value and is applicable for five years from the date of registration.

Commercial Vehicle Taxation

For commercial vehicles, the tax structure includes Token Tax, Professional Tax, and Income Tax. Some notable rates include:

• Vehicles up to 4060kg laden weight: PKR 1,000 annually

• Vehicles exceeding 16,000kg: PKR 8,000 annually

• Commercial tractor tax: PKR 2,600 (Token Tax), PKR 200 (Professional Tax), PKR 7,200 (Income Tax)

Passenger commercial vehicles have additional per-seat annual tax rates:

• Non-AC vehicles: PKR 180 per seat

• AC vehicles: PKR 300 per seat

Motor Tax on Private Vehicles

For private vehicles with a seating capacity exceeding six persons:

• Non-commercial vehicles: PKR 2,500 per seat annually

• Buses/station wagons: PKR 300 per seat annually

Rebate on Token Tax

A 10% rebate on annual Token Tax is available if the tax is paid in full before August 31 of the financial year.

Additional Fees for Late Registration

If a vehicle is not registered within the prescribed period, additional fees apply:

• Motorcycles/Scooters/Rickshaws: PKR 500 (after 30 days)

• Private & Commercial Vehicles:

  • Exceeding 60 days but within 180 days: PKR 2,000

  • Exceeding 180 days: PKR 5,000

For agricultural tractors, penalties increase with delay, reaching 200% of the actual fee if exceeding 360 days.
You can also calculate PTA tax on any mobile phone with our accurate PTA Mobile Tax Calculator. Quick, reliable, and simple!