Sindh Doubles Motor Vehicle Tax With New Mini-Budget

The Sindh Excise and Taxation Department has notified of an increase in the motor vehicle tax as a result of the introduction of the Finance (Supplementary) Act, 2022 (aka mini-budget) by the Federal Government. According to the notification, the Sindh Government has doubled the motor vehicle tax on vehicles.

The motor vehicle tax on vehicles up to 1000cc has been increased from Rs. 50,000 to Rs. 100,000, while the tax on vehicles ranging between 1001cc to 2000cc has been raised from Rs. 100,000 to Rs. 200,000. Meanwhile, the vehicles with engine capacity of 2001cc and above will now pay Rs. 400,000 in motor vehicle tax.

It is pertinent to mention that the decision by the Sindh Government to increase the motor vehicle tax in the province was taken after the introduction of the mini-budget by the Federal Government. The step will make it even more difficult for a family to own a car, especially after the increase in Federal Excise Duty (FED) on vehicles as well.

Here is the copy of the notification by the Sindh Excise Department in Karachi regarding the increase in motor vehicle tax in the province.

Sindh Motor Vehicle Tax, Motor Vehicle Tax, Excise and Taxation Department, Sindh Excise and Taxation Department, Sindh Excise Department — Sindh Excise Department Notification

The Federal Government has increased the Federal Excise Duty (FED) by 2.5% for all engine categories, except cars with engine capacity of 2000cc or above as FED for these cars has been increased by 5%, leading to a massive increase in their prices since the increased taxes fall on the consumer.

You can find the latest prices of all vehicles in our automotive section.

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