Pakistan Budget 2019-20: Tax on Cars is now categorized into 3 slabs


The government has proposed a revision in the federal excise duty tax on cars, according to State Minister for Revenue Hammad Azhar, who presented the Federal Budget for FY19-20 on Tuesday.

According to Azhar, new slabs were proposed in the Federal Budget in order to enlarge the scope of the FED. “Through Finance Supplementary Second Amendment Act, 2019, FED on cars [with engine capacity of] 1700 cc and above was introduced at 10%,” he said.

Azhar also said the government introduced the following slabs in the Federal Budget:

  • Cars from 0-1,000 CC at 2.5%
  • Cars from 1,001-2,000 CC at 5%
  • Cars from 2,001 and above at 7.5%


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