Federal govt reduces registration tax for commercial vehicles

ISLAMABAD: The federal government has reduced the registration tax for commercial vehicles in Excise and Taxation department Islamabad Capital Territory (ICT), ARY News reported on Monday.

According to details, the federal government reduced the registration tax for commercial cars to 1 percent which was up to 4 percent earlier.

The decision was taken to provide maximum and concrete relief to the citizen, stated the press release issued by Excise and Taxation department ICT.

It is pertinent to mention here that the coalition government increased the advance tax on vehicles with engine capacity of 1600CC or above in the fiscal budget for 2022-23.

Under the budget, the government doubled the tax on cars with engine capacity of 1600CC or above.

Speaking on the National Assembly floor, the then-finance minister Miftah Ismail said: “In continuation of our policy to shift the burden of tax on the rich class, advance tax on motor vehicles exceeding 1600cc is proposed to be increased.”

“Furthermore, advance tax shall also be collected at the rate of 2 percent of the value in cases of high-value hybrid and electric vehicles,” he added.

The finance minister added, “Additionally, the rate of tax for non-filers shall be enhanced to 200 percent from the current 100 percent.” Under the new budget, a motorist owning a car of up to 850cc would have to pay Rs10,000 under registration tax.