In Budget 2024-25 government has decided to impose levy tax on vehicles on the basis of prices instead of engine Capacity. In this regard Federal Government has decided to take advance tax on the purchase and registration of vehicles which will be imposed according to price of vehicle instead of engine capacity.
For your information according to current law advance e tax on vehicles is imposed and collected according to engine capacity. The advance tax is collected on the purchase and registration of vehicles up to 2000cc. Government has decided take this step as prices of all vehicles have been increased significantly that is why tax collection will be done on the basis of price.
