Islamabad: Based on vehicle price rather than engine capacity, the federal government has chosen to receive advance income tax on the purchase and registration of vehicles.
Finance Minister Muhammad Aurangzeb made the suggestion when he unveiled the budget for the upcoming fiscal year, 2024–2025.
Read Also: Pakistan Federal Budget 2024-25
The decision has been made in light of Pakistan’s rising car prices. For cars under 2000cc, the tax is currently determined by the engine capacity.
In a nation where car prices are already relatively high, the proposal’s approval would raise the cost of vehicle registration and prices.
In the National Assembly, Aurangzeb announced the federal budget for the fiscal year 2024–25, which has a total cost of more than Rs18.877 trillion, to the dismay of the opposition benches.
The budget is being presented when Pakistan and the International Monetary Fund (IMF) are negotiating a $6 billion to $8 billion loan package.