No Car For Non-Filers: Buying a Car? Become a Tax Filer First

Do you want to purchase a vehicle in Pakistan? This is important news from Wise Wheels PK: according to the recent Federal Budget 2025-26 suggestions, the purchase of vehicles by non-filers will be tightly controlled. This is meant to promote tax compliance and inclusion of more individuals into the formal economy; the government has introduced a number of new measures in the Federal Budget 2025-26. 

The most significant proposal is the one that recommends the cessation of the non-filers to purchase vehicles in Pakistan.

The government is attempting to expand the tax net of the nation. In the National Assembly, during the announcement of the budget, Finance Minister Muhammad Aurangzeb said that formal financial transactions, including purchasing vehicles, would be permitted only to those who return their taxes and declare their wealth.

This is to encourage the individuals to pay tax and to assist in maintaining good records within the economy. Should it occur, then it will be among the extremely harsh measures initiated to compel individuals into the tax net.

The Modern Green Tax

Meet the Green Tax – a proposed tax on cars that will allegedly lead to environmentally friendly behaviour and, certainly, bring in slightly more revenue.

This is how it adds up:

• Smaller Local Engines (Under 1300cc): In the case of cars which are locally assembled/manufactured with an engine capacity below 1300cc, the manufacturer will pay a levy of 1 percent of the value of the car. E.g. For a car costing Rs. 100,000, Rs. 1,000 will be charged. This is likewise the situation with imported cars.
• Mid-Range Local Engines (1300cc to 1800cc): Cars which are locally manufactured or imported with an engine capacity of 1300cc to 1800cc incur a 2% levy. The manufacturer pays the levy at the rate of 2 percent of the value of the vehicle.
• Larger Local Engines (Over 1800cc): Buses and trucks, which are commercial vehicles, will be subjected to a duty of 1 percent of their value, whether they are constructed within the country or imported. Three percent of its value, whether constructed domestically or imported.
• Local Buses and Trucks: if you pay your taxes and you are not part of the informal economy You are alright. This however, can be a great inconvenience to you, in the event that you have been dodging tax net and you are in need of buying a new ride.

And to the rest of us, the Green Tax could represent a small increase in the price of new cars, depending upon the proportion of that amount manufacturers will charge consumers.

Take control of your next car buying experience in Pakistan with Wise Wheels Pakistan as your trusted partner to be equipped with the latest automotive legislation and professional advice.