Cars, motorcycles, EVs transfer fee increased in Islamabad

ISLAMABAD: Authorities in the federal capital have sharply increased vehicle transfer fees for cars and motorcycles, effective April 14, 2025, while for the first time in the country, the transfer fees have also been imposed on electric vehicles (EVs).

Transfer fees for vehicles have surged by as much as 300% to 1100%.

The fee for transferring a 1000cc car has risen by Rs1,200 to Rs2,750. For cars above 1000cc, the fee is now Rs5,500, up from Rs2,000. fFe for cars above 1800cc now stands at Rs11,000, up from Rs3,000.

For the first time, a transfer fee has been introduced for electric vehicles (EVs).

EVs with a capacity of up to 50 kilowatts (kW) will incur a fee of Rs2,500, while those between 50 kW and 100 kW will be charged Rs5,500. EVs exceeding 100 kW will face a Rs10,000 fee.

Similarly, motorbike transfer fees have also seen an increase. The fee for bikes up to 200cc is now Rs550, up by Rs150.

Bikes between 200cc and 400cc will be charged Rs1,000, while those above 400cc will face a Rs1,500 fee.

All vehicle transfer fees will be deposited into the designated account of the Ministry of Finance.

According to a report, the price of cars in Pakistan has been steadily rising for several years, creating difficulties for middle-class families looking to purchase a vehicle within their budget.

But what exactly is driving these high prices? What role do government taxes and dealer margins play in the escalating costs?

In an interview with ARY News program ‘Khabar’, Chief Executive Officer (CEO) of the Indus Motors Company, Ali Asghar Jamali, shed light on the issue, offering a detailed explanation of the factors contributing to the rising car prices in Pakistan.

Jamali explained that the government’s taxes are the primary contributor to the expensive cars.

Jamali acknowledged that cars in Pakistan have become so expensive, saying that the government is the largest stakeholder in the price of each car, whether imported or locally manufactured.

He provided the example of the Toyota Fortuner, one of the most luxurious vehicles in the country, saying that its on-road price stands at Rs 23 million, with over 60% (Rs 14 million) attributed to taxes.