What taxes are added to the on-road price of a new car in Pakistan?
Last updated 26 Oct 2026
On top of the company price, a new car registered in Punjab or Islamabad pays FBR advance tax (s.231B, 0.5% to 12% of the invoice value by engine size, three times that for a non-filer), the provincial registration fee (1% to 4% of the value), token tax, the s.234 income tax collected with it, 1% capital value tax above 1300cc, professional tax and the smart registration card fee; number plates are extra.
Step by step
- Start with the company price from the maker’s own price list. Freight, dealer charges and any “own money” premium are not part of it.
- Add FBR advance tax under s.231B: 0.5% to 12% of the invoice value by engine size, three times for a non-filer. Motorcycles up to 200cc pay none.
- Add the provincial registration fee: in Punjab and Islamabad 1% of the value up to 1000cc, 2% up to 2000cc and 4% above.
- Add token tax: Rs 20,000 once for life up to 1000cc; above that a share of the invoice price every year (Punjab 0.3% up to 2000cc and 0.4% above; Islamabad 0.25% and 0.35%).
- Add the s.234 income tax collected with token tax (a lump sum of Rs 10,000 up to 1000cc, doubled for a non-filer), 1% capital value tax above 1300cc, professional tax and the smart card fee.
A worked example
A 1000cc petrol car at an example price of Rs 3,000,000 (not any model’s real price), registered in Punjab by a filer: Rs 3,091,500 on the road. A non-filer pays Rs 3,161,500, or Rs 70,000 more.
| Line (Punjab, filer) | Amount |
|---|---|
| Company price (example) | Rs 3,000,000 |
| FBR advance tax (s.231B) | Rs 30,000 |
| Registration fee | Rs 30,000 |
| Token tax | Rs 20,000 |
| Income tax with token tax (s.234) | Rs 10,000 |
| Capital value tax | Rs 0 |
| Professional tax | Rs 200 |
| Smart registration card | Rs 1,300 |
| Total on the road | Rs 3,091,500 |
Most lines are labelled “Unverified” on the site: we read them from the official documents below, but a tax practitioner has not yet checked them. Confirm with the excise office before you pay.
Work out the on-road price for your vehicle · Filer vs non-filer · Token tax in Punjab
Questions
Are number plates included in the on-road price?
No. The plate fee is blank on Punjab Excise’s page, and in Islamabad plates are paid separately in cash at an unpublished amount, so we leave them out.
Is the on-road price the same in every province?
No. FBR advance tax is federal, but the registration fee, token tax and other fees are set by each province. Gari Rate covers Punjab and Islamabad; for Sindh, Khyber Pakhtunkhwa and Balochistan use their excise departments’ calculators.
Does a new motorcycle pay FBR advance tax?
Not up to 200cc: sections 231B and 234 leave those out. A bike pays the provincial registration fee, token tax, professional tax and the smart card.
Is “own money” part of the on-road price?
No. Extra money for early delivery is a premium, not a price or a tax, and we never include it.
Sources
- FBR Withholding Tax Rates Card, tax year 2027 (Finance Act 2026)
- Excise, Taxation & Narcotics Control Dept, Punjab: motor vehicle tax
- Finance Act 2026, s.2 (ICT motor vehicle tax tables)
- ICT Excise fee schedule (archived copy, Nov 2025)
Last checked 26 Oct 2026 · Sources and method