Comments on: Is it Necessary to Tax Vehicles Based on Engine Displacements? https://carspiritpk.com/is-it-necessary-to-tax-vehicles-based-on-engine-displacements/?utm_source=rss&utm_medium=rss&utm_campaign=is-it-necessary-to-tax-vehicles-based-on-engine-displacements Pakistan's Trusted Automobile Blog Fri, 01 Mar 2024 17:12:14 +0000 hourly 1 https://wordpress.org/?v=6.7.2 By: Ali Khan https://carspiritpk.com/is-it-necessary-to-tax-vehicles-based-on-engine-displacements/#comment-16372 Fri, 01 Mar 2024 17:12:14 +0000 https://carspiritpk.com/?p=81708#comment-16372 Awesome article with very interesting information. Our system is very close to the ones in India, Thailand and Indonesia. However the others are fast leaving us behind.

Europe’s tax system is the best. There, people can afford to change cars more often and can afford to get the latest tech easily. The average age of the car fleet in the EU is around 12 years old.
In Pakistan, one of the most prominent Japanese car companies is still selling 50 year old technology to us as brand new in the form of Bolan and Ravi. Almost all bikes in the country are beyond obsolete. Even used cars are becoming so expensive that, each year, the majority of people who would like to buy a used car, have no choice but to buy older and older model cars. That means that ave. age of our car fleet in Pakistan is decades old! if any system like the one in EU is implemented here, most poor people with very old cars would simply get rid of their cars because of the added tax.

We need a serious up date in our auto sector policy and technology if we want our auto sector to go anywhere.

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By: This article raises more questions than it answers https://carspiritpk.com/is-it-necessary-to-tax-vehicles-based-on-engine-displacements/#comment-16369 Fri, 01 Mar 2024 16:28:26 +0000 https://carspiritpk.com/?p=81708#comment-16369 The article initially gave the impression that the discussion will remain limited to the annual road tax (M.V. tax or token tax, which is usually collected at the provincial excise), which it did till European Union. But the monologue went off-track after that and the onwards paragraphs are a hodge-podge of confusion mixing purchase incentives, road tax, import taxes and lots of other kinds of taxes without noting if those taxes/subsidies are of the annual kind or the one time incentive offered to the manufacturer and/or customer.

The article doesn’t note the nuances of taxation according to which province the car is/was registered in. E.g. Punjab has an annual luxury tax on specific categories while GB, AJK, erstwhile FATA & some parts of KPK are tax-exempt zone and the NCP (non-custom-paid) cars from there cannot enter mainland Pakistan, despite submitting an annual token. Also, Lasbela registered vehicles had no annual token that’s why most of the old Bedford trucks have Lasbela number plate.

This writer’s articles used to be good but recently the quality has reduced a bit. The writing style is good so I hope she gets back her quality and to continuously improve.

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By: David Myth https://carspiritpk.com/is-it-necessary-to-tax-vehicles-based-on-engine-displacements/#comment-16364 Fri, 01 Mar 2024 14:59:39 +0000 https://carspiritpk.com/?p=81708#comment-16364 Thanks for the article! Vehicle taxing can be complicated.

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