When buying a new car in Pakistan, the sticker price is not what you pay. Multiple taxes and fees are added — and they can add Rs. 3–8 lakh to a Rs. 50 lakh car. Here's the complete guide for 2025.
1. Withholding Tax (Section 231B — FBR)
This is the biggest additional cost. Withholding tax is collected at the time of vehicle registration and depends on two factors: your engine size and whether you're a tax filer or non-filer.
| Engine Size | Filer (ATL) | Non-Filer | Saving by Filing |
|---|---|---|---|
| Up to 1000cc | Rs. 10,000 | Rs. 30,000 | Rs. 20,000 |
| 1001 to 1300cc | Rs. 25,000 | Rs. 75,000 | Rs. 50,000 |
| 1301 to 1600cc | Rs. 50,000 | Rs. 1,50,000 | Rs. 1,00,000 |
| 1601 to 1800cc | Rs. 75,000 | Rs. 2,25,000 | Rs. 1,50,000 |
| 1801 to 2000cc | Rs. 1,00,000 | Rs. 3,00,000 | Rs. 2,00,000 |
| 2001 to 2500cc | Rs. 1,50,000 | Rs. 4,50,000 | Rs. 3,00,000 |
| Above 2500cc | Rs. 2,00,000 | Rs. 6,00,000 | Rs. 4,00,000 |
2. Registration Fee (Provincial Excise)
Paid to your provincial excise department. In Punjab, registration fees range from Rs. 4,500 (up to 1000cc) to Rs. 18,000 (above 2000cc) plus a 0.5% ad-valorem fee on the vehicle's assessed value. Sindh has a similar structure. KPK and Balochistan are slightly different.
3. Annual Token Tax
Paid annually to continue legal road use. In Punjab 2025:
| Engine Size | Annual Token Tax (Punjab) |
|---|---|
| Up to 1000cc | Rs. 1,500 |
| 1001–1300cc | Rs. 2,000 |
| 1301–1600cc | Rs. 3,000 |
| 1601–2000cc | Rs. 6,000 |
| Above 2000cc | Rs. 12,000 |
4. Transfer Fee (for Used Car Purchase)
If buying a used car, transfer fee is paid to the excise department to transfer ownership. In Punjab, this is Rs. 1,000–2,500 depending on engine size, plus documentation and verification charges. Total transfer typically costs Rs. 3,000–8,000.
5. Number Plate Charges
New registration includes basic number plates at no extra charge. Personalized/RFID plates: Rs. 1,500–15,000 depending on type. Punjab has launched smart number plates with embedded RFID chips.
