The government in its recent financial amendments, have allowed non-filers of tax returns to buy new cars. Earlier in the first financial amendment made in January 2019, the government allowed non-filers to buy cars up to 1300cc engine capacity only.
Related: Automakers Happy as Government Allows Non-Filers to Buy New Cars
Now as per the second financial amendment, non-filers can buy locally assembled vehicles of all engine capacities. However the rate of Advance Income Tax has been significantly increased for non-filers by 50%. Below is the rate of Advance Income Tax under Section 231(B) for different vehicle categories based on their engine displacement:
| Engine (cc) | Tax for Filers (PKR) | Tax for Non-Filers (PKR) |
| 850cc or below | 7,500 | 15,000 (previously 10,000) |
| 851cc to 1000cc | 15,000 | 37,500 (previously 25,000) |
| 1001cc to 1300cc | 25,000 | 60,000 (previously 40,000) |
| 1301cc to 1600cc | 50,000 | 150,000 (previously 100,000) |
| 1601cc to 1800cc | 75,000 | 225,000 (previously 150,000) |
| 1801cc to 2000cc | 100,000 | 300,000 (previously 200,000) |
| 2001cc to 2500cc | 150,000 | 450,000 (previously 300,000) |
| 2501cc to 3000cc | 200,000 | 600,000 (previously 400,000) |
| 3000cc or above | 250,000 | 675,000 (previously 450,000) |
A computer animation professional with over 23 years of industry experience having served in leading organizations, TV channels & production facilities in Pakistan. An avid car enthusiast and petrolhead with an affection to deliver quality content to help shape opinions. Formerly written for PakWheels as well as major publications including Dawn. Founder of CarSpiritPK.com
