Being a filer in Pakistan offers significant financial advantages when purchasing and registering vehicles.
Withholding Tax (WHT) on Vehicle Registration
The Federal Board of Revenue (FBR) has updated the WHT rates for vehicle registration based on engine capacity and filer status:Worldwide Tax Summaries Online+5mywheels+5FBR Download+5
| Engine Capacity (cc) | Filer Rate (% of Vehicle Value) | Non-Filer Rate (% of Vehicle Value) |
|---|---|---|
| Up to 850cc | 0.5% | 1.5% |
| 851cc – 1000cc | 1% | 3% |
| 1001cc – 1300cc | 1.5% | 4.5% |
| 1301cc – 1600cc | 2% | 6% |
| 1601cc – 1800cc | 2.5% | 7.5% |
| 1801cc – 2000cc | 3% | 9% |
| 2001cc – 2500cc | 4% | 12% |
| 2501cc – 3000cc | 5% | 15% |
| Above 3000cc | 6% | 18% |
Note: Non-filers are now restricted from purchasing or registering vehicles above 800cc. They are only permitted to buy motorcycles, rickshaws, tractors, and cars up to 800cc. Business Recorder+2Profit by Pakistan Today+2Pakwheels+2
Annual Token Tax for Private Vehicles
Annual token tax rates vary based on engine capacity and filer status:blog.taxationpk.com+1LinkedIn+1
| Engine Capacity (cc) | Filer Rate (PKR) | Non-Filer Rate (PKR) |
|---|---|---|
| Up to 1000cc | 800 | 1,600 |
| 1001cc – 1199cc | 1,500 | 3,000 |
| 1200cc – 1299cc | 1,750 | 3,500 |
| 1300cc – 1499cc | 2,000 | 4,000 |
| 1500cc – 1599cc | 2,500 | 5,000 |
| 1600cc – 1999cc | 3,000 | 6,000 |
| 2000cc and above | 10,000 | 20,000 |
Note: These rates are applicable in Islamabad. Rates may vary in other provinces. blog.taxationpk.com
Annual Tax for Transporters and Transport Service Providers
Goods Transport Vehicles
Advance tax is levied based on the laden weight of the vehicle:FBR Download+8TAG & Co+8LinkedIn+8
- Up to 8,119 kg:
- Filer: Rs. 2.5 per kg
- Non-Filer: Rs. 7.5 per kgexcise.punjab.gov.pk
- Over 8,120 kg (after 10 years from registration):
- Filer: Rs. 1,200 per annum
- Non-Filer: Rs. 3,600 per annumFBR Download+1icmainternational.com+1
Note: Non-filers are subject to a 200% increase in tax rates compared to filers.
Passenger Transport Vehicles
Advance tax is calculated per seat per annum:LinkedIn+1blog.taxationpk.com+1
- 4 to 9 Seats:
- Filer: Rs. 500 per seat
- Non-Filer: Rs. 1,500 per seatexcise.punjab.gov.pkFBR Download
- 10 to 19 Seats:
- Filer: Rs. 1,000 per seat
- Non-Filer: Rs. 3,000 per seat
- 20 Seats or More:
- Filer: Rs. 1,500 per seat
- Non-Filer: Rs. 4,500 per seat
Note: Non-filers pay three times the amount compared to filers.
Advantages of Being a Filer
Registering as a tax filer in Pakistan offers numerous benefits:
- Lower Withholding Taxes: Reduced rates on vehicle registration and token taxes.
- Eligibility for Vehicle Purchase: Ability to purchase and register vehicles above 800cc.
- Financial Transactions: Fewer restrictions on banking and financial operations.
- Business Opportunities: Enhanced credibility and opportunities in business dealings.