What you pay at registration
When a new car is registered for the first time, the Excise office collects provincial fees and taxes along with federal advance income tax and capital value tax. The income tax part is adjustable against a filer’s tax for the year; the rest is a cost.
- Registration fee = value × the provincial rate for the engine size (1% to 5%).
- First token tax and section 234 income tax: for life up to 1000cc, otherwise for this year (see the token tax calculator).
- Section 231B advance tax = value × the rate for the engine size; three times for non-filers.
- Capital value tax: 1% of the value for engines above 1300cc.
- Sindh luxury tax on 1500cc and bigger cars, and each province’s fixed charges for plates and the smart card.
Example: a locally made 1300cc car in Punjab worth Rs 5,000,000. Registration fee at 2% = Rs 100,000, token tax at 0.3% = Rs 15,000, section 234 income tax Rs 2,500, section 231B advance tax at 1.5% = Rs 75,000, smart card and professional tax Rs 1,500. Total Rs 194,000 (Rs 346,500 for a non-filer). An imported 1800cc car worth Rs 12,000,000 in Sindh costs a filer Rs 864,550, including Rs 100,000 luxury tax and Rs 120,000 capital value tax. An 800cc car worth Rs 3,000,000 in Islamabad comes to Rs 78,400.
Section 231B advance tax
| Engine (cc) | Filer | Non-filer |
|---|---|---|
| ≤ 850 | 0.5% | 1.5% |
| 851 – 1000 | 1% | 3% |
| 1001 – 1300 | 1.5% | 4.5% |
| 1301 – 1600 | 2% | 6% |
| 1601 – 1800 | 3% | 9% |
| 1801 – 2000 | 5% | 15% |
| 2001 – 2500 | 7% | 21% |
| 2501 – 3000 | 9% | 27% |
| 3001+ | 12% | 36% |
Not included: Punjab’s luxury tax on imported cars, choice-number fees, late registration fines and the hire-purchase (bank lease) endorsement fee. Punjab does not publish a government number plate fee, so none is added. If you imported the car yourself and paid section 148 tax at Customs, section 231B is not charged again at registration. Buying on finance? Work out the instalment with the car loan calculator.
Frequently asked questions
What is the registration fee for a new car in Punjab, Sindh and Islamabad?
Punjab and Islamabad charge 1% of the value up to 1000cc, 2% from 1001cc to 2000cc and 4% above 2000cc. Sindh charges 1% up to 1000cc, 1.25% up to 1300cc, 2.25% up to 2500cc and 5% above that. Islamabad exempts electric cars from the registration fee.
How much advance income tax is paid on a new car in 2026-27?
Under section 231B a filer pays a share of the value by engine size: 0.5% up to 850cc, 1% up to 1000cc, 1.5% up to 1300cc, 2% up to 1600cc, 3% up to 1800cc, 5% up to 2000cc, 7% up to 2500cc, 9% up to 3000cc and 12% above that. A non-filer pays three times as much. An electric car worth Rs 5 million or more pays 3%. For a car bought from a local maker the dealer usually collects it at sale, and the Excise office does not charge it again. It is adjustable against your income tax.
What is the capital value tax on cars?
Under section 8 of the Finance Act 2022, cars with an engine above 1300cc, and electric cars with a battery above 50 kWh, pay 1% of their value. The maker or Customs collects it at sale or import; otherwise the Excise office collects it at registration.
What is the own money tax at registration?
If a locally made car is resold by its first buyer before it is registered, section 231B(2A) adds a fixed tax at registration: Rs 100,000 up to 1000cc, Rs 200,000 from 1001cc to 2000cc and Rs 400,000 above that, three times as much for non-filers.
Does Sindh charge luxury tax on new cars?
Yes, once at registration. Locally made cars pay Rs 25,000 from 1500cc to 1999cc and Rs 50,000 from 2000cc. Imported cars pay Rs 100,000 from 1500cc to 1999cc, Rs 275,000 from 2000cc to 2999cc and Rs 450,000 from 3000cc. These rates were set by the Sindh Finance Act 2024.
Guides
- Importing a car into Pakistan in 2026: gift and transfer of residence rules, age limits and dutyPersonal baggage is gone: in 2026 overseas Pakistanis import cars as a gift or on transfer of residence.
- Vehicle token tax 2026-27 in Punjab, Sindh and IslamabadToken tax for cars and motorcycles in 2026-27, the lifetime token, section 234 tax (double for non-filers) and how to pay online in Punjab, Sindh and Islamabad.
Related calculators
- Car import duty calculatorDuty and taxes on importing a new or used car into Pakistan in 2026-27: customs, regulatory and excise duty, sales tax, income tax and Gift scheme amounts.
- Vehicle token tax calculatorWork out the 2026-27 token tax on a car or motorcycle in Punjab, Sindh or Islamabad, with the lifetime token and section 234 tax for filers and non-filers.
- Car loan calculatorWork out the monthly installment, total markup and full cost of car financing in Pakistan from price, down payment, rate and tenure.
Sources
- Income Tax Ordinance 2001 amended to 30.06.2026: s.231B, First Schedule Part IV Division VII, Tenth Schedule rule 1
- FBR Withholding Tax Rates Card, updated to 30 Jun 2026 (s.231B, pages 10-12)
- Finance Act 2022, s.8: capital value tax on motor vehicles (amended by Finance Act 2024 and 2026)
- Excise, Taxation & Narcotics Control Department Punjab: new registration, smart card and token tax rates
- Excise, Taxation & Narcotics Control Department Sindh: registration fee schedule
- Excise Sindh: Four Wheeler Tax calculator (plate, smart card and book charges)
- Sindh Finance Act 2024 (Sindh Act II of 2024), s.3: luxury tax table in the Sindh Motor Vehicles Taxation Act 1958
- Islamabad Excise & Taxation Department: registration fee schedule and fee calculator
This calculator gives an estimate for guidance. It is not official advice. Rates and rules change, so confirm important decisions with the relevant authority or a qualified professional. See how we calculate, or report a mistake.