Buying a new 1000cc car in Pakistan? Your tax status can make a big difference in the total amount you pay. People registered as filers pay a lower advance withholding tax, while non-filers pay a much higher rate.
Tax Rates for a 1000cc Car
The advance tax depends on whether you are a filer or a non-filer.
- Filer: 1% of the vehicle’s value
- Non-Filer: 3% of the vehicle’s value
This means a non-filer pays three times more tax than a filer.
Example
Suppose you buy a new 1000cc car worth PKR 3,000,000.
- Filer: PKR 30,000 advance tax
- Non-Filer: PKR 90,000 advance tax
The non-filer pays PKR 60,000 more than the filer.
Other Charges
Besides advance tax, buyers also have to pay:
- Registration fee
- Token tax
- Number plate charges
- Processing fees
These charges vary by province and vehicle model.
Why Becoming a Filer Matters
Registering as a filer can help you save money when purchasing a vehicle. It also offers tax benefits in other financial transactions, making it a smart choice for regular taxpayers.
Conclusion
If you are planning to buy a new 1000cc car, becoming a filer can reduce your tax burden significantly. Paying a lower advance tax means lower overall vehicle costs, making it a better financial decision.
FAQs
Q: Who pays less tax on a new 1000cc car?
A: Filers pay less tax than non-filers.
Q: How much advance tax does a filer pay?
A: A filer pays 1% of the vehicle’s value.
Q: How much advance tax does a non-filer pay?
A: A non-filer pays 3% of the vehicle’s value.
Q: Are registration charges included in the advance tax?
A: No. Registration fees, token tax, and other charges are separate.
