budgeT 2016 Tax on cars

In the budget of the fiscal year 2016-17, the federal government has decided to decrease the customs duty by five percent on the import of the 800CC -1800CC used cars. In budget 2016, there is also a chance for the reduction in the percentage of the customs duty and the sales tax applied on the parts and the equipment for the motorcycle industry.

According to the sources of the Federal Board of Revenue (FBR), the government is reviewing the proposal of increasing the age limit for the import of the used cars to 4 – 5 years, which is currently three years.

With this step, FBR will be able to get the revenue of more than 20 million. The authorities say that with this step, the cars will be easily available to the people due to the decrease in the difference found between the demand and the supply of the cars.

In the federal budget 2016, there is a chance for the reduction in the customs duty by five percent on the equipment used for the manufacturing of the motorcycles. Other than that, there is also a chance for the decrease in the sales tax by 7.5 percent.

The prices of the motorcycles are also expected to be decreased. Additionally, there is also a chance for the decrease in the customs duty on the import of the agricultural machinery.

It would be really great if the government decreased the customs duty on the import of used cars, and motorcycles.

Earlier, it was reported that in budget 2016, the tax on vehicles will be increased from two percent to three percent from 1500CC to 2000CC under Motor Vehicle Tax and increasing lifetime tax on motorcycle/scooter from Rs. 1200 to Rs. 1600 and lifetime three thousand tax instead of Rs. 400 annual tax on motor cab rickshaws.


  1. by giving them cheaper cars, instead charge higher tax, make better roads,
    means cutting on pollution, also increasing safety for
    Road users,
    The custom should not be any more then 10% value of the car,
    The custom stinger is very heavy unsafe for Pakistan’s population
    Old cars will run forever and cause pollution!

  2. We’re the lonely country charging extortionate amount , we should be paying the manufacturers prices as rest of the world,
    An average thinks 50 times before buying one,
    After all that he get to rubbish, pieces joint together,
    The car duty should not be more than adminstration fee!
    They want Pakistanis to drive old pollution causing cars forever,
    It’s no excuse


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