Section 231B — Advance Tax on Motor Vehicles
Section 231B advance tax on motor vehicles Pakistan TY 2025-26 — fixed PKR amount by engine cc band, filer vs non-filer rates, paid at registration.
Section 231B imposes a fixed PKR advance tax at the registration or transfer of a private motor vehicle, tied to engine displacement. The rates climb steeply: PKR 10,000 (filer) / 30,000 (non-filer) at 850cc, doubling at most band boundaries, reaching PKR 500,000 / 1,500,000 above 3000cc. The Excise & Taxation department collects on behalf of FBR.
Non-filer premium is the headline punishment: 3× the filer rate at every band. A buyer purchasing a 1600cc sedan pays PKR 50,000 as a filer or PKR 150,000 as a non-filer — a PKR 100,000 difference for a single transaction. The ATL premium on motor vehicles is one of the strongest enforcement mechanisms in Pakistan's tax code.
Commercial vehicles (taxis, goods transport, public service) face different rates under Section 234 — based on seating/payload rather than engine cc. Section 231B specifically targets private passenger vehicles. Verify your vehicle's classification before paying; mis-classified vehicles can be re-assessed years later with default surcharge.
Frequently asked questions
When is Section 231B collected?
At registration of a new vehicle and at every transfer of ownership. The Excise & Taxation department collects the fixed PKR amount before issuing the registration document.
Why are non-filer rates so high?
Non-filers pay 3× the filer rate at every cc band. The premium is one of Pakistan's strongest enforcement levers — a single 1800cc purchase costs PKR 450,000 for a non-filer vs PKR 150,000 for a filer.
Does Section 231B apply to used vehicles?
Yes — every transfer of ownership triggers Section 231B at the cc-band rate. The buyer pays at the time the registration is updated to their name.
Are commercial vehicles covered?
No. Commercial vehicles (taxis, goods transport) fall under Section 234, which uses seating/payload-based rates. Section 231B is for private passenger vehicles.