New Car Levy to Earn Govt Rs. 188 Billion

For context, the federal administration seeks to collect around Rs.

Key points

• While vehicles between 1, 001cc and 2, 000cc would face a 2 percent levy, cars below 1, 000cc would carry a zero rate.
• Cars above 2, 000cc would carry a proposed rate of 10 percent.
• The rates would additionally cover imported and locally assembled or manufactured internal combustion engine vehicles.
• The administration expects collections from the locally assembled or manufactured vehicle category to remain relatively stable throughout the five-year period, ranging from Rs.
• The policy document additionally provides separate estimates for levy collections on imported vehicles.

For context, the federal administration seeks to collect around Rs. 188.58 billion through the new Automotive Development Levy on locally assembled or manufactured vehicles over five years, according to revenue projections in the draft auto policy approved by Prime Minister Shehbaz Sharif.

For context, the estimates put projected collections at Rs. 37.71 billion in 2026-27, rising to Rs. 38.46 billion in 2027-28, ProPakistani has learnt. Govt Rejects 18% IMF Tax on EVs.

In practice, the administration expects collections of Rs. 38.29 billion in 2028-29, followed by Rs. 37.30 billion in 2029-30 and Rs. 36.83 billion in 2030-31. Notably, the five-year total comes to Rs. 188.58 billion.

In practice, the draft policy sets different levy rates according to vehicle type and engine capacity.

For context, the rates would additionally cover imported and locally assembled or manufactured internal combustion engine vehicles.

While trucks and light commercial vehicles, buses and vans, and specified prime movers would carry a 2 percent rate, two- and three-wheelers and agricultural tractors would be exempt.

Notably, the administration expects collections from the locally assembled or manufactured vehicle category to remain relatively stable throughout the five-year period, ranging from Rs. 36.83 billion to Rs. 38.46 billion annually. Govt to Impose New 10% Car Levy.

Meanwhile, the policy document additionally provides separate estimates for levy collections on imported vehicles.

Notably, the final revenue impact would depend on the policy's implementation, the applicable calculation mechanism and the volume and mix of vehicles sold or imported during the 5-year period. Stay Connected with ProPakistani.

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In short, new Car Levy to Earn Govt Rs. 188 Billion is the central thread here, and readers can expect follow-up reporting as the picture becomes clearer.