Govt Reduces Registration Tax for Commercial Vehicles in ICT

The federal government has reduced the registration tax for commercial vehicles in Excise and Taxation department Islamabad Capital Territory (ICT). According to details, the registration tax for commercial vehicles has been reduced to 1% which was up to 4% earlier. The decision was taken to provide maximum and concrete relief to the citizen, stated the press release issued by Excise and Taxation department ICT.

It is pertinent to mention here that the coalition government increased the advance tax on vehicles with an engine capacity of 1,600CC or above in the fiscal budget for 2022-23. Under the budget, the government doubled the tax on cars with an engine capacity of 1,600CC or above. Speaking on the National Assembly floor, the then-finance minister Miftah Ismail said:

“In continuation of our policy to shift the burden of tax on the rich class, advance tax on motor vehicles exceeding 1,600cc is proposed to be increased. Furthermore, advance tax shall also be collected at the rate of 2% of the value in cases of high-value hybrid and electric vehicles.”

In other recent developments, customs duty on the import of CKD parts for small cars has been reduced. Whereas FBR has also slashed customs duty on importing car parts.

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