Business Desk 
Jun 12, 2025
In the Pakistan Budget 2025, Finance Minister Muhammad Aurangzeb announced several new measures aimed at improving tax collection and bringing more people into the formal economy.
Notably, one of the significant proposals is to prevent non-filers from purchasing vehicles in Pakistan.
During the presentation of the Federal Budget 2025 Pakistan, the finance minister announced that only those who file their tax returns and submit their wealth statements will be allowed to carry out formal financial transactions — including the purchase of vehicles.
With this move, the government intends to encourage tax compliance and improve documentation in the economy. As per the govt, it would be one of the strictest steps taken so far to push people toward joining the tax system.
Budget 2025 highlights Pakistan
- Smaller local engines (Under 1300cc): For locally assembled or manufactured cars with an engine under 1300cc, the manufacturer will pay a 1% levy on the car’s value. The same applies to imported vehicles.
- Mid-range local engines (1300cc to 1800cc): Cars with engines between 1300cc and 1800cc, whether locally made or imported, will face a 2% levy, which means that manufacturers will pay 2% of the vehicle’s value.
- Larger local engines (Over 1800cc): For cars with engines over 1800cc, the manufacturer of Commercial vehicles like buses and trucks, whether locally assembled or imported, will be subject to a 1% levy on their price, paid by the manufacturer.
