After you have spent your hard-earned cash on your new car and arrive at the Excise desk, they will look up your CNIC and tell you the tax you need to pay is much higher than what your dealer said!
Most people will know that non-filers cost double, however when registering a new car the cost of a non-filer is triple.
FBR Vehicle Token Tax and Registration Rates 2026 (Tax Year 2027)
Vehicle Token Tax (New Cars) (Section 231B)
Section 231B is the withholding tax on vehicles. This is calculated as a percentage of the value of the vehicle depending on the engine size.
| Engine Size (cc) | Filer | Non-Filer |
|---|---|---|
| Up to 850cc | 0.5% | 1.5% |
| 851-1,000cc | 1% | 3% |
| 1,001-1,300cc | 1.5% | 4.5% |
| 1,301-1,600cc | 2% | 6% |
| 1,601-1,800cc | 3% | 9% |
| 1,801-2,000cc | 5% | 15% |
| 2,001-2,500cc | 7% | 21% |
| 2,501-3,000cc | 9% | 27% |
| Above 3,000cc | 12% | 36% |
This is just the FBR part of your car registration tax in Pakistan 2026. There is an additional registration fee charged by the province.
Used Car Transfer
If you are buying a used car then Section 231B will be calculated using flat rates.
| Engine Size (cc) | Filer | Non-Filer |
|---|---|---|
| Up to 850cc | Nil | Nil |
| 851-1,000cc | PKR5,000 | PKR15,000 |
| 1,001-1,300cc | PKR7,500 | PKR22,500 |
| 1,301-1,600cc | PKR12,500 | PKR37,500 |
| 1,601-1,800cc | PKR18,750 | PKR56,250 |
| 1,801-2,000cc | PKR25,000 | PKR75,000 |
| 2,001-2,500cc | PKR37,500 | PKR112,500 |
| 2,501-3,000cc | PKR50,000 | PKR150,000 |
| Above 3,000cc | PKR62,500 | PKR187,500 |
This reduces by 10% for every full year since the vehicle was first registered. This tax is not applicable to automobiles over 5 years old.
No More Late Filers
There is no longer a latefiler category. If you have missed the deadline to submit your return on 31st October 2026 then you can expect to pay non-filer rates until your name has been added back to Active Taxpayer List.
Annual Vehicle Token Tax Rates (Section 234)
There are two types of taxes you may be required to pay for your annual token. People often get confused between these two.
- Section 234 Income Tax – Goes to FBR
- Motor Vehicle Tax – Goes to your Province
The Excise department will collect both so you will only be paying one amount.
Private Car Section 234 Tax Rates
Non-Filers pay double.
| Engine Size (cc) | Filer (Annually) | Non-Filer (Annually) | Filer (Single) | Non-Filer (Single) |
|---|---|---|---|---|
| Up to 1,000cc | PKR800 | PKR1,600 | PKR10,000 | PKR20,000 |
| 1,001-1,199cc | PKR1,500 | PKR3,000 | PKR18,000 | PKR36,000 |
| 1,200-1,299cc | PKR1,750 | PKR3,500 | PKR20,000 | PKR40,000 |
| 1,300-1,499cc | PKR2,500 | PKR5,000 | PKR30,000 | PKR60,000 |
| 1,500-1,599cc | PKR3,750 | PKR7,500 | PKR45,000 | PKR90,000 |
| 1,600-1,999cc | PKR4,500 | PKR9,000 | PKR60,000 | PKR120,000 |
| 2,000cc + | PKR10,000 | PKR20,000 | PKR120,000 | PKR240,000 |
Note the bands have changed from Section 231B. If you have a 2,000cc car you will pay the 1,801-2,000cc rate when registering your car. However, you will pay the highest rate when paying your token.
Motor Vehicle Tax (Punjab and Sindh)
Punjab and Sindh have different ways of calculating Motor Vehicle Tax.
Punjab
- Up to 1,000cc – One off token of around PKR20,000
- 1,001-2,000cc – 0.3% of invoice price (Paid Annually)
- Over 2,000cc – 0.4% of invoice price (Paid Annually)
Sindh
Mostly a set rate depending on engine size. This will not depend on the price of your car.
Small cars offer one off rates.
Published rates can vary in Sindh so it’s best to contact Sindh Excise to find out what the current rate is.
Late Payment Penalties
Provinces will charge penalties for paying token tax late. These will vary between provinces. Make sure to check your challan. You may have built up arrears over the years.
Used Car Buyers should take note. Any unpaid token tax will remain on the vehicle. Make sure there are no arrears.
Excise Token Tax Search
You can perform an excise token tax search using your Provincial Excise Department site.
- Punjab – excise.punjab.gov.pk
- Sindh – Sindh Excise, Taxation and Narcotics Control
Enter your registration number and you will see the details of the owner and any amount owing.
Financial Example (Filer vs Non-Filer)
Below shows how much difference there is between filer and non-filer car tax. The prices of the cars are just examples.
New 1,800cc Car (Worth PKR8Million)
| Cost | Filer | Non-Filer |
|---|---|---|
| Section 231B (3% & 9%) | PKR240,000 | PKR720,000 |
| Section 234 (1st Year) | PKR4,500 | PKR9,000 |
| Total | PKR244,500 | PKR729,000 |
Non-Filers pay an extra PKR484,500.
New 2,000cc Car (Worth PKR12Million)
| Cost | Filer | Non-Filer |
|---|---|---|
| Section 231B (5% & 15%) | PKR600,000 | PKR1,800,000 |
| Section 234 (1st Year) | PKR10,000 | PKR20,000 |
| Total | PKR610,000 | PKR1,820,000 |
Non-Filers pay an extra PKR1,210,000.
Used Cars
If you are transferring a recently registered 2000cc car the difference can be up to PKR50,000. This will reduce every year and after 5 years there will be no difference.
Compare to Becoming a Filer
You can become a filer again. You will pay a penalty for being a latefiler and also pay the PKR25,000 surcharge for individuals.
When registering a new 2000cc car this is a small amount to pay compared to the PKR1.2Million difference. You can also usually claim Section 231B and Section 234 Tax as a credit in your return so make sure you keep all your receipts.
Check Your Status
Excise will look at the status of your car at the time of registering. The list will not update right away.
Be sure to get active beforehand.Check your status by texting ATL (space) your CNIC to 9966. Only then register your car.
Don’t Pay Extra Tax
Don’t pay the Excise department lakhs of extra tax. You can easily fix this issue in advance.
Our tax experts at TaxAccountant.pk can register your return and wealth statement. We can also deal with the ATL surcharge if you are a latefiler. We can also confirm your status before you purchase. Corporate Fleet Managers can also ask us to check the registrations of all their vehicles.
Contact us before registering/transfer.
