Lahore 23°C
Karachi 28°C
Tax on motor vehicles
(1) Any person at the time of collecting motor vehicle tax shall also collect advance tax at the rates specified in Division III of Part IV of the First Schedule.
(2) If the motor vehicle tax is collected in instalments or lump sum the advance tax may also be collected in instalments or lump sum in like manner.
(2A) In respect of motor cars used for more than ten years in Pakistan, no advance tax shall be collected after a period of ten years.
(3) In respect of a passenger transport vehicle with registered seating capacity of ten or more persons, advance tax shall not be collected after a period of ten years from the first day of July of the year of make of the vehicle.
(4) In respect of a goods transport vehicle with registered laden weight of less than 8120 kilograms, advance tax shall not be collected after a period of ten years from the date of first registration of vehicle in Pakistan.
(5) Advance tax collected under this section shall be adjustable.
(6) For the purpose of sub-sections
(1) and (2) motor vehicle shall include the vehicles specified in sub-section (7) of section 231B.
(2) If the motor vehicle tax is collected in instalments or lump sum the advance tax may also be collected in instalments or lump sum in like manner.
(2A) In respect of motor cars used for more than ten years in Pakistan, no advance tax shall be collected after a period of ten years.
(3) In respect of a passenger transport vehicle with registered seating capacity of ten or more persons, advance tax shall not be collected after a period of ten years from the first day of July of the year of make of the vehicle.
(4) In respect of a goods transport vehicle with registered laden weight of less than 8120 kilograms, advance tax shall not be collected after a period of ten years from the date of first registration of vehicle in Pakistan.
(5) Advance tax collected under this section shall be adjustable.
(6) For the purpose of sub-sections
(1) and (2) motor vehicle shall include the vehicles specified in sub-section (7) of section 231B.
Amendment history (16)
- The words “Transport business” substituted by the Finance Act, 2008.
- Inserted by the Finance Act, 2002.
- Inserted by the Finance Act, 2013.
- Comma substituted by the Finance Act, 2013.
- The words “2030 kilogram or more but” omitted by the Finance Act, 2003.
- Sub-section (5) substituted by the Finance Act, 2013. The substituted sub-section (5) read as
- Added by the Finance Act, 2015.
- Inserted by the Finance Act, 2007.
- Section 234A omitted by the Finance Act, 2021. The omitted section
- Sub-section (4) omitted by the Finance Act, 2017. The omitted sub-section (4) is
- Expression inserted through Finance Act, 2020 dated 30 June, 2020
- Inserted by the Finance Act, 2021.
- Full stop substituted and proviso added by the Finance Act, 2021.
- Sub-section (1A) added by the Finance Act, 2022.
- omitted through Tax Laws (Second Amendment) Ordinance, 2022 (VI of 2022) dated 22.08.2022.
- Added by Finance Act 2017.
Amendment notes captured from the source page(s); they may include changes to neighbouring provisions.
Source FBR PDF page 478
Unofficial reference, compiled from the FBR’s consolidated Income Tax Ordinance 2001 (amended up to 30 June 2026). Provided for general information only — not an official FBR publication and not legal or tax advice. Always verify against the official FBR text before relying on it for filing or any decision.