The government has unveiled the fiscal budget for 2022-23 which shows several significant changes. Under the new budget, the government has doubled the tax on cars with horsepower over 1,600cc.
“Provided that in cases where engine capacity is not applicable and the value of the vehicle is Rs5 million or more, the rate of tax collectable shall be 3% of the import value as increased by customs duty, sales tax, and federal excise duty in case of imported vehicles or invoice value in case of locally manufactured or assembled vehicles,” the Finance Bill read.
Here’s a list of taxes to be paid on vehicles:
| Engine Capacity | Tax |
| Upto 850cc | Rs10,000 |
| 851cc to 1000cc | Rs.20,000 |
| 1001cc to 1300cc | Rs25,000 |
| 1301cc to 1600cc | Rs50,000 |
| 1601cc to 1800cc | Rs150,000 |
| 1801cc to 2000cc | Rs200,000 |
| 2001cc to 2500cc | Rs300,000 |
| 2501cc to 3000cc | Rs400,000 |
| Above 3000cc | Rs500,000 |
