Car Registration Tax Calculator 2026-27 (231B)
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.
How this 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
- Registration fee schedule: Motor Vehicle Registration: Excise, Taxation & Narcotics Control Department, Punjab
Version 1.0.0 · reviewed 15 Sept 2026. Rates change with the Federal Budget and regulator notifications; we update this tool when they do. Confirm with the primary source before making financial decisions.