loader image

Motor vehicle tax collection surges 34% in first quarter

KARACHI: The collection of motor vehicle tax has increased sharply by 34 per cent during the first quarter (July-September) of the current fiscal year, owing to a massive rise in the sales of domestically-manufactured motor cars.

The collection of motor vehicles tax grew to Rs9.4 billion during the first quarter of the current fiscal year, compared with Rs7 billion in the corresponding quarter of the last fiscal year, according to the statistics released by the Finance Ministry this week.

The provincial governments have a mandate to collect the tax on various slab basis.

The car sales have recorded a phenomenal increase of 84 per cent during the first quarter of the current fiscal year. The sales of locally-manufactured cars stood at 68,888 units during July-September of the current fiscal year, compared with 37,383 units in the corresponding period of the last year, according to the data released by the Pakistan Auto Manufacturers Association.

The automobile industry saw an increase of 58 per cent in vehicle sales to 22,079 units during September 2021 against 13,982 units in September 2020.

This growth in car sales was mainly triggered by low base effect, improvement in the macro activity and reduction in car prices after the announcement of the Federal Budget FY22, according to analysts at Topline Securities.

According to details issued by the Finance Ministry, Punjab collected motor vehicle tax worth Rs5.95 billion in the first quarter of the fiscal year 2021/22, compared with Rs3.99 billion in the preceding fiscal year.

Similarly, Sindh motor vehicle tax collection posted a growth of 22.32 per cent to Rs2.74 billion, compared with Rs2.24 billion.

Meanwhile, Khyber-Pakhtunkhwa and Balochistan authorities recorded a decline in the collection by 1.17 per cent and 19 per cent, respectively.

courtesy: bolnews.com

Leave a Reply

Your email address will not be published.