You’ve paid for the vehicle and filled out the form. The Excise officer will run your CNIC, and you’ll be charged 3x more tax on the challan.
No changes to your vehicle have been made, but your status changes to the FBR’s Active Taxpayer List.
FBR Vehicle Tax Rates for Filers & Non-Filers (2027 Tax Year).
Section 231B – Withheld Tax on Vehicle Registration/Sale/Transfer.
Section 231B of the Income Tax Ordinance states that advance income tax is payable when registering a private vehicle.
This tax will be charged once based on the type of vehicle. At point of sale by manufacturer, or at point of registration by Excise.
Not a Provincial Tax.
Your excise challan will include:
- Provincial Taxes – Registration, Number Plate & Motor Vehicle Tax. This goes to Punjab/Sindh/KP/Balochistan.
- Federal Taxes – Section 231B Advance Tax & Section 234 Tax. This goes to the FBR.
So only the Federal Tax will depend on whether you’re a filer or not.
Why is it advance?
If you’re a filer you can usually offset section 231B tax against your income tax liability when you file your return. So not all the money is lost.
If you’re not a filer you won’t have a return to offset, so you lose all the money.
Withheld Tax Rates for Filer & Non-Filer.
New Vehicle Registration.
For new vehicles, a percentage of the vehicle’s value will be paid under section 231B. The non-filer rate is 3x higher for all bands.
| Engine Size | Filer | Non-Filer |
|---|---|---|
| ≤850cc | 0.5% | 1.5% |
| 851cc to 1,000cc | 1% | 3% |
| 1,001cc to 1,300cc | 1.5% | 4.5% |
| 1,301cc to 1,600cc | 2% | 6% |
| 1,601cc to 1,800cc | 3% | 9% |
| 1,801cc to 2,000cc | 5% | 15% |
| 2,001cc to 2,500cc | 7% | 21% |
| 2,501cc to 3,000cc | 9% | 27% |
| >3,000cc | 12% | 36% |
Examples of how much it would cost you:
Note: These are examples only and do not reflect market price.
| Vehicle | Value Assumed | Filer Cost | Non-Filer Cost | Difference |
|---|---|---|---|---|
| 1,000cc Hatchback | 3.2M | 32,000 | 96,000 | 64,000 |
| 1,300cc Sedan | 5M | 75,000 | 225,000 | 150,000 |
| 1,800cc Sedan | 9M | 270,000 | 810,000 | 540,000 |
| 2,400cc SUV | 18M | 1,260,000 | 3,780,000 | 2,520,000 |
This can easily exceed the price of another small car or a luxury SUV.
Car Registration Tax Pakistan 2026.
Note which band it falls into. If it’s 2,000 cc, it falls in the 5% band. However, if it’s 2,001cc, it will fall into the 7% band.
Always check the exact engine size from documentation.
Vehicle Transfer (Used Cars).
Withheld tax on vehicle transfer. This tax has a set rate based on engine size and usually paid by the new owner.
| Engine Size | Filer | Non-Filer |
|---|---|---|
| ≤850cc | Nil | Nil |
| 851cc to 1,000cc | 5,000 | 15,000 |
| 1,001cc to 1,300cc | 7,500 | 22,500 |
| 1,301cc to 1,600cc | 12,500 | 37,500 |
| 1,601cc to 1,800cc | 18,750 | 56,250 |
| 1,801cc to 2,000cc | 25,000 | 75,000 |
| 2,001cc to 2,500cc | 37,500 | 112,500 |
| 2,501cc to 3,000cc | 50,000 | 150,000 |
| >3,000cc | 62,500 | 187,500 |
These rates will be reduced by 10% for each year since the vehicle was originally registered. After 5 years, there will be no transfer tax.
Late Filers Now Are Non-Filers.
The previous late filer category has been removed. If you haven’t filed your return by 31st October 2026 you’ll be charged the non-filer rates until your name appear on the Active Taxpayer List.
Companies will also be affected in the same way. If they’re a June-end company and they don’t file by 31st December 2026, they’ll be charged non-filer rates on all vehicle registrations in their fleet until they’re reinstated.
Annual Token Tax.
There is an annual token tax. This includes section 234 income tax. This is paid to the FBR and collected by Excise.
It’s simple. Non-filers will pay double.
| Engine Size | Filer (Ann) | Non-Filer (Ann) | Filer (Lump) | Non-Filer (Lump) |
|---|---|---|---|---|
| ≤1,000cc | 800 | 1,600 | 10,000 | 20,000 |
| 1,001cc to 1,199cc | 1,500 | 3,000 | 18,000 | 36,000 |
| 1,200cc to 1,299cc | 1,750 | 3,500 | 20,000 | 40,000 |
| 1,300cc to 1,499cc | 2,500 | 5,000 | 30,000 | 60,000 |
| 1,500cc to 1,599cc | 3,750 | 7,500 | 45,000 | 90,000 |
| 1,600cc to 1,999cc | 4,500 | 9,000 | 60,000 | 120,000 |
| 2,000cc+ | 10,000 | 20,000 | 120,000 | 240,000 |
The difference between a filer and a non-filer isn’t much for the annual rate. But it will apply every year the vehicle is owned. If it’s a fleet, it will multiply by each vehicle.
Lump Sum.
Many people choose to pay the lump sum. If a non-filer purchases a 2,000cc vehicle, they’ll pay 240,000 for section 234 only. Whereas if they’re a filer, they’ll pay 120,000.
Motor Vehicle Tax.
The motor vehicle tax in your token challan will remain the same. However, Punjab and Sindh calculate their tax differently. To see what it will be for your province you should check your Excise portal.
How to Save Money.
- Get all returns and wealth statements filed.
- If you’re late you’ll need to pay Section 182 Penalty and Section 182A Surcharge.
- Wait until your name appears on the Active Taxpayer List.
- Check by texting ATL (space) your CNIC to 9966.
- Now you can register/transfer/book your vehicle.
Excise will check you at the time of purchase, so you’ll need to allow some time as the list doesn’t update instantly.
Costs.
If you’re a late filer you’ll have to pay the 25,000 surcharge and late penalty to get you back onto the list. This can save you over 500,000 on a 1,800cc vehicle.
On the SUV it can save you over 2.5 million.
Speak to Us Before Paying Excise.
Extra tax for non-filers is just a loss. You won’t be able to reclaim it and if you made a large purchase and don’t have a return on file it can cause questions on where the money came from.
Our tax staff will prepare your late returns, write wealth statements explaining the rationale for the purchase, pay the amount due for the ATL surcharge and certify your status. We’ll also check your fleet registrations if you’re a company/dealer.
Message us before You Book/transfer your vehicle.
