# Car Registration Tax Calculator 2026-27 (231B)

Source: Searchable (https://searchable.pk/tools/cars/car-registration-tax-calculator)
Type: Calculator
Rates reviewed: 15 Sept 2026
Retrieved: 15 Sept 2026

See what a new car really costs on the road: section 231B advance tax by engine size (filer vs non-filer), Punjab registration fee and number plate, so you know the total before you book.

Version 1.0.0. Inputs: Invoice price (incl. duties & taxes), Engine capacity, Buyer's FBR status, Include Punjab registration fee & plate.

## Worked example (default inputs)

- Invoice price (incl. duties & taxes): 4500000 PKR
- Engine capacity: 1300 cc
- Buyer's FBR status: filer
- Include Punjab registration fee & plate: true

**On-road cost (filer): Rs 4,662,000**

A 1,300cc car invoiced at Rs 4,500,000 attracts 1.50% = Rs 67,500 advance income tax under s.231B as a filer, plus Rs 94,500 Punjab registration fee and plate. A non-filer would pay Rs 202,500 in 231B alone.

### Breakdown

- Invoice price: Rs 4,500,000
- s.231B advance tax: 1.50% (filer): Rs 67,500 (Adjustable against your income tax for the year if you file.)
- Registration fee (Punjab): Rs 90,000
- Number plate, smart card, processing: Rs 4,500
- Total on the road: Rs 4,662,000

### Filer vs non-filer (231B only)

- As filer: Rs 67,500
- As non-filer: Rs 202,500
- Difference: Rs 135,000

## How it is calculated

**Section 231B** of the Income Tax Ordinance requires the Excise office to collect advance income tax when a new vehicle is registered. Since Finance Act 2025 it is a **percentage of the vehicle's value** rather than a fixed amount per engine band, and Finance Act 2026 left the schedule unchanged:

| Engine | Filer | Non-filer |
|---|---|---|
| up to 850cc | 0.5% | 1.5% |
| 851–1000cc | 1% | 3% |
| 1001–1300cc | 1.5% | 4.5% |
| 1301–1600cc | 2% | 6% |
| 1601–1800cc | 3% | 9% |
| 1801–2000cc | 5% | 15% |
| 2001–2500cc | 7% | 21% |
| 2501–3000cc | 9% | 27% |
| above 3000cc | 12% | 36% |

Value is the invoice price including duties and taxes for locally assembled cars, or customs value plus duty, FED and sales tax for imports. The tax is **adjustable**, filers set it off against their income tax when they file, which is why the filer/non-filer gap is the single biggest saving in buying a car.

**Registration fee** is provincial. Punjab charges 1% of value up to 1000cc, 2% to 2000cc and 4% above, plus number plate and smart-card charges. Token tax is charged separately and annually (or once, for ≤1000cc).

## Frequently asked questions

**Is 231B refundable?**

It is an advance tax. Filers adjust it against the income tax due on their return; if it exceeds the tax due the balance is refundable. Non-filers cannot adjust it unless they file for that year.

**Does 231B apply to used cars?**

Transfers of ownership attract a fixed amount by engine band, reduced by 10% for each year since first registration and nil after five years. This calculator covers new registrations.

**What about electric cars?**

EVs are banded by motor power (kW) rather than cc under the same section, and several provinces reduce registration and token tax for EVs. Ask the Excise office for the current EV band before booking.

**Can the dealer include these in the price?**

Dealers often quote an on-road figure that bundles 231B, registration and plate: ask for the breakdown and check the 231B line against this calculator; some quote the non-filer rate to everyone.

## Sources

- Income Tax Ordinance 2001, First Schedule, Part IV, Division VII (s.231B): Finance Act 2025, unchanged by Finance Act 2026 (Federal Board of Revenue): https://www.fbr.gov.pk/
- Registration fee schedule: Motor Vehicle Registration (Excise, Taxation & Narcotics Control Department, Punjab): https://excise.punjab.gov.pk/registration

How to cite: "Car Registration Tax Calculator 2026-27 (231B)", Searchable, rates reviewed 15 Sept 2026, https://searchable.pk/tools/cars/car-registration-tax-calculator