Banks’ financing of cars in Pakistan increased by Rs 99 billion (or 46 per cent) in the last one year to a record high of Rs 314 billion in July, as financing became more affordable for more people due to reduction in Benchmark interest rate.
The central bank cut the benchmark interest rate by 625 basis points to 7% between March and June 2020 to pave the way for cheap bank financing to help businesses and individuals to deal with epidemics. To stimulate the economy to increase growth, government attention as well as auto production and sales, more people from different income groups (middle-income groups) were encouraged to buy cars.
More importantly, the introduction of new brands and models during epidemics – mostly in Jeep (sports utility vehicle – SUV) and engine capacity over 1000 cc – led to a large number of people during epidemics. A car that emphasizes spending savings from cost reduction.
In addition, changes in economic activity have increased people’s incomes, especially in the agricultural sector. Others saved more due to the suspension of international travel and tourism amid the epidemic. The rise in labor remittances in the country has also encouraged people to spend more on luxury cars during the year.
Auto financing has been growing for the past 13 consecutive months (July 2020 to July 2021). According to data compiled by Atlas Honda Limited (AHL) Research, it has maintained record high financing over the past few months.
The number of record financing matches the astonishing increase in auto sales over the past year. Earlier, the industry had halted production and sales for a few months in the wake of the February 2020 outbreak of Covid 19 in the country.
The carmaker sold 20,699 units in July alone, up 104% from 10,123 units sold in the same month last year. Similarly, in the last financial year 2020-21, car sales increased by 90% to 238,000 units. Auto financing will continue as long as interest rates are not single digits. In addition, the government’s policy on car manufacturing and the introduction of electronic cars will continue to find new buyers in the country.
In addition, lower interest rates, increased agricultural incomes and increased remittances from workers boosted car sales and car financing. Meanwhile, stabilization in car prices also played a role in boosting automobile production. For example, car prices, which rose 20.8% during FY20, rose 3.4% during FY21. (At that time) the stabilization of the exchange rate played a role in preventing prices from rising during the period under review.
6 Best-Selling Cars In Pakistan As Per Financial Year 2020-2021
What is the top-selling car of Fiscal Year 2020-2021?
Car Financing in Pakistan | Auto Financing in Pakistan | Bank Financing in Pakistan | Benchmark Interest Rate | Cut in Interest Rate | Yaris | Top Car Sellers in Pakistan | New Honda City Car |
LATEST
- New Taxes on E-commerce Transactions in Pakistan
New Taxes on E-commerce Transactions in Pakistan: In the recent budget (Finance Act 2025) Government of Pakistan has taken some significant steps towards the taxation of local ecommerce industry of Pakistan. The new amendments in the Income tax Ordinance 2001 and Sales Tax Act 1990 will affect all those ecommerce businesses operating through online platforms, websites, or courier based Cash on Delivery (COD) Model. Below are the significant highlights of amendments in tax laws of Pakistan which are necessary for your understanding: Enhanced Definition of “Online Market Place” Through Finance Act 2025, section 2(38B) of income Tax Ordinance 2001 amended and definition of “Online Market Place” has been broadened. It now also includes: These will help buying and selling between multiple parties, whether the platform owns the goods/services or not. New Taxes on E-commerce Transactions in Pakistan for Digitally Ordered Goods/Services Through Finance Act 2025, a new section, 6A in the Income Tax Ordinance, introduces a tax on payments received for digitally ordered goods/services through local platforms (including websites). Applies To:This section applies to all persons receiving payments for goods/services delivered from within Pakistan via online platforms. Excludes:It does not include export proceeds received in Pakistan which are already taxed under sections 154 and 154A. Tax Collection by Payment Intermediaries and & Couriers Under amendment in section 153(2A) of Income Tax Ordinance 2001 through Finance Act 2025: This applies to all payments made for digitally ordered goods and services via local platforms, including websites. Rate of Income tax to be deducted from a payment for digitally ordered goods/services Two different tax rates has been introduced for payments to ecommerce sellers against digitally ordered goods, complete description is here: Sales Tax Collection Responsibility As per Sales Tax Act 1990, the responsibility to collect and pay sales tax on digitally ordered goods is explained here: Rates of Sales Tax on Payments against Digitally ordered goods The applicable rates of sales tax to be deducted are given in the Eleventh Schedule of the Sales Tax Act 1990. The sales tax withheld by the payment intermediary or the courier company will be final discharge of tax liability against the digitally ordered goods by the: AS per the eleventh schedule of Sales Tax Act 1990 the rate of sales tax to withhold to withhold by the payment intermediary / Courier Company will be at the rate of 2% of gross value of supplies. Mandatory NTN & Sales Tax Registration To promote documentation and transparency: Unregistered sellers will not be allowed to operate on their platforms. - FBR Extends Sales Tax & FED Return Filing Deadline for June 2025FBR Extends Sales Tax & FED Return Filing Deadline for June 2025 – The Federal Board of Revenue (FBR) has officially extended the last date for filing sales tax and Federal excise Duty Return for the period of June 2025. FBR Extends Sales Tax & FED Return Filing Deadline for June 2025 New due date to file the sales tax and FED return is now 4th August 2025 which was due on 18.07.2025. This extension has been granted to to facilitate the taxpayers that they must ensure their monthly compliance delaying due to technical issues facing on FBR Iris Portal. FBR issued a notification in this regard on his official website and communicated the new extended deadline for filing sales tax return.
- Budget 2025 Update: FBR Broadens Definition of Online MarketplaceBudget 2025 Update: FBR Broadens Definition of Online Marketplace: In the recent federal budget 2025-26, the Federal Board of Revenue (FBR) has redefined “Online Market Place” for the purpose of regularizing and taxing the fast growing digital economy of Pakistan. One of the important update in the Income Tax Ordinance, 2001, is the redefinition of the term “online marketplace.” The change in definition will bring a massive change to a wide range of digital platforms and sellers, remodeling how e-commerce competitors deals with the tax system in Pakistan. New Definition of “Online Marketplace” Section 2(38B): “online marketplace” means an information technology platform run by e-commerce entity over an electronic network that acts as a facilitator in transactions that occur between a buyer and a seller and includes “online interfaces” that facilitate, for a fee, the direct interaction between multiple buyers and multiple sellers via digital orders for supply of goods and services, with or without the platform taking economic ownership of the goods or providing or rendering the services that are being sold.“
- FBR Opens Tax Return Filing Tax Year 2025 – Great Submit NowFBR Opens Tax Return Filing Tax Year 2025 – Recently Federal Board of Revenue (FBR) has formally issued the tax return form for Tax Year 2025. It is a great news and now taxpayers can submit their annual income tax returns by using the updated form via the FBR Iris Portal. It is highly recommended to you to file your annual income tax returns well before the last date to avoid tax notices and penalties thereafter. What is Deadline Line for Filing Tax Return? For Filing Tax Return for Tax Year 2025 last date to file tax return for Salaried class, individuals and Partnership businesses is 30th September 2025. For Companies registered under the Companies act 2017 the deadline is 31st December 2025. Who Should File the Income Tax Return? You should file your tax return if you fall in any of the following categories: Benefits of Filing Your Tax Return Following are the benefits of filing tax return in Pakistan. Need Help with Filing your Return? If you need any help in filing your tax return then you may contact us. Contact: Global Tax Consultants, 00923334875413 Address: Office No UM-33, Zainab Tower, Model Town, Link Road, Lahore-Pakistan. https://globaltaxconsultants.pk
- FBR Biometric Verification Mandatory by 31st July 2025 – What Taxpayers Must Know?FBR Biometric Verification Mandatory by 31st July 2025 – What Taxpayers Must Know? – If you’re Sales tax registered taxpayers in Pakistan, the deadline is ahead: 31st July 2025 like you did your biometric verification last year in July. Under the provision of proviso to sub-rule (4) of rule 5 of the Sales Tax Rules, 2006, every individual, any member of an association of persons, and a director of a company are required to visit e-Sahulat Centre of NADRA during the month of July every year for biometric re-verification Why FBR Biometric Verification Mandatory by 31st July 2025? You must know that if no biometric verification, then no sales tax return filing. How to do Biometric Verification? You have to go to any NADRA e-Sahulat Centre with your original CNIC for biometric verification of sales tax.
- FBR Introduces Multi-Factor Login Authenticator for Sales Tax UsersFBR Multi-Factor Login Authenticator – To ensure privacy, increase of security and simplify access to the sales tax system the Federal Board of Revenue (FBR) through Pakistan Revenue Automation Limited (PRAL) has launched a Multi-Factor Login Authentication system for sales tax registered taxpayers. What are the key features of the new FBR Multi-Factor Login Authenticator? Following are the key features of the new system introduced by the FBR for logging FBR Iris Portal for those taxpayers who are also registered in sales tax with FBR.
- Rs 750 Prize Bond Result July 2025
The Rs 750 Prize Bond Draw No 103 was held on Tuesday, 15th July 2025 in Rawalpindi. This quarterly draw was conducted by the Directorate of National Saving of Pakistan. Winning Numbers – Rs 750 Prize Bond Result July 2025 - Lahore Tax Bar Requests FBR to Extend Sales Tax Return Filing Deadline
Lahore Tax Bar Requests FBR to Extend Sales Tax Return Filing Deadline – Recently Lahore Tax Bar Association has formally written to the Federal Board of Revenue for an extension in filing sales tax returns for the months of April, May and June 2025. The association has requested 31st July 2025 to be the extended deadline. Reasons Behind the Lahore Tax Bar Requests FBR to Extend Sales Tax Return Filing Deadline The Lahore Tax Bar Association has highlighted the following several technical and operational issues which are effecting the compliance on timely basis. Proposed Relief by Lahore Tax Bar Association Considering the issues highlighted above and requested by Lahore Tax Bar Association through a formal letter communicated to FBR to allow taxpayers to file sales tax returns for April, May and June 2025 by 31st July 2025 without penalties and late payment surcharge. Why this Matters? Filling of sales tax returns on timely basis is a legal obligation but tax consultants and practitioners are facing problems to fitful this obligation / compliance on timely basis. What Taxpayers Should do now? While the request letter to FBR from LTBA is under consideration then taxpayers are advised to: - Prize Bond Draw Schedule 2025 – Dates, Cities & How to Check Results in Pakistan
Prize bond is one of the most liked mode of investment and saving in Pakistan. Issued by the Government of Pakistan through the State Bank of Pakistan and managed by the National Savings of Pakistan. Prizes are distributed among winners through lucky draws on different dates in different cities. What is the Prize Bond Draw Schedule? Prize Bond Draw schedule is the list published by the Directorate of National Savings about the dates, cities and denominations of different prize bonds to be drawn. A complete schedule is issued by the Directorate of National Savings for a complete year. Prize Bond Denominations In Pakistan prize bonds are available in different denominations like, 100, 200, 750, 1500, 25,000 (Premium Prize Bond) and 40,000 (Premium prize Bond). All these prize bonds draws are held after every three months in different Cities of Pakistan. How to check Prize Bond Results? You can check the prize bond draw results in different ways, some of them are given here: Prize Bond Draw Schedule Pakistan 2025 A complete draw schedule for the year 2025 is given here where you can check the dates and cities of different prize bond denominations. - Section 21(s) of Income Tax Ordinance 2001: Disallowance of Expenses on Cash Receipts Over Rupees 200,000Introduction The new amendment relates to the disallowance of business expenses under section 21s of the Income Tax Ordinance 2001. During assessment proceedings under section 122, if the FBR detects that a cash transaction exceeding Rupees 200,000 has been received against a single invoice, it may disallow 50% of the related business expenses which eventually increases the tax tax liability for the taxpayers who received the cash payment against sales. What is Section 21(s)? A new amendment has been introduced in the Income Tax Ordinance, 2001 through the Finance Act, 2025 by inserting a new sub-section 21(s). This new amendment introduced to promote digital payments in Pakistan. For example, if a business taxpayer sales goods or provide services for amounting to Rupees 650,000 under a single invoice and receives payment in cash. If Rupees 400,000 worth of expenses is claimed against that single invoice, Rupees 200,000 (i.e. 50%) will be disallowed — which will increase the taxable income by the same amount. Why It Matters to You? The change will affect all businesses especially: It is just because if the sale transaction is settled in cash and not through: How to Stay Compliant of this new amendment? To avoid disallowance of 50% of business expenses against cash sales of amounting to Rupees 200,000 or more the business should follow these best practices: What will be the Consequences of Non Compliance? If any business person fails to fully comply with section 21s of the Income Tax Ordinance 2001 then it can lead to: Conclusion Section 21s of the Income Tax Ordinance 2001, is really a big tax amendment in Pakistan’s tax compliance landscape. If businesses are receiving cash payments against sale of goods or provision of services then time has come to review the payment methods. Receiving payments through banking channels will not only ensure tax compliance but also reduces audit risk.
- ایف بی آر نے ٹیکسوں کی ادائیگیوں کا نیا سسٹم متعارف کرا دیا
FBR introduces ePayment 2.0 ایف بی آر نے حال ہی میں ایک نیا اور بہتر ٹیکس ادائیگی کا نظام متعارف کرایا ہے جس کا نام “ای پیمنٹ 2.0” ہے۔ یہ نظام آئی آر آئی ایس 2.0 پورٹل پر دستیاب ہے، ای پیمنٹ 2.0 کے اہم فوائد: یہ نظام کن ٹیکسز کے لیے ہے؟ ای پیمنٹ 2.0 میں مختلف قسم کے ٹیکس شامل ہیں، جیسے: پہلے اور اب کا فرق: پہلے، ٹیکس دہندگان کو ایک الگ پورٹل پر جا کر ٹیکس ادائیگی کے لیے (ادائیگی کی سلپ) بنانی پڑتی تھی۔اب یہ سب کچھ ایک ہی جگہ، آئی آر آئی ایس 2.0 پر، زیادہ آسانی کے ساتھ کیا جا سکتا ہے۔ ادائیگی کی تصدیق: ٹیکس ادا کرنے کے بعد، آپ کو کمپیوٹرائزڈ پیمنٹ رسید بذریعہ ای میل اور ایس ایم ایس ملے گی۔ یہ رسید ایف بی آر کی جانب سے آپ کی ادائیگی کی سرکاری تصدیق ہوگی۔ یہ نظام ٹیکس دہندگان کے لیے ٹیکس ادائیگی کو تیز، آسان اور قابلِ اعتماد بناتا ہے! - Tax Advice for 2025: Do not File Incomplete Tax Returns
Filing Income Tax Returns 2025: Do not File Incomplete Tax Returns Filing Income Tax Returns 2025: Do not File Incomplete Tax Returns. Whenever tax season approaches, tax filers are busy collecting and discussing their tax returns while working with tax consultants. On the other side, tax consultants face a lot of rush, especially as deadlines approach. At the same time, it is crucial for both tax filers and tax consultants to exercise maximum care in providing information and preparing tax working papers. Filing Income Tax Returns 2025 requires attention to detail to avoid mistakes. As we approach the process of Filing Income Tax Returns 2025, taxpayers must remain vigilant about the completeness of their submissions. When it comes to Filing Income Tax Returns 2025, being thorough can save you from future complications. Filing Income Tax Returns 2025 accurately is essential for reducing the risk of audits. In the context of Filing Income Tax Returns 2025, understanding the forms and requirements is key. The importance of Filing Income Tax Returns 2025 cannot be overstated; thoroughness is your ally. It is extremely beneficial for taxpayer to take personal interest in finalizing the workings and check for any errors, mistakes or omission of any information necessary to declare in tax returns. It is also the duty of tax consultant to use his professional experience to avoid any errors and wrong declarations of financial information in tax returns. When Filing Income Tax Returns 2025, ensure all assets and income sources are declared. Filing Income Tax Returns 2025 helps you maintain compliance and avoid penalties. To successfully navigate Filing Income Tax Returns 2025, keep abreast of changes in tax law. It is important for taxpayer because in this way he can avoid penalty or imposition of tax due to wrong declaration of financial information in tax returns. That’s why taxpayer and tax consultant must need to know before filing tax return that tax return is complete. Why Incomplete Filing of Tax Return is Full of Risks? We are here to explain you the risks involved in filing wrong and incomplete tax returns. Sometime taxpayer does not provide complete information and tax consultant is unable to declare it properly. But it is also a fact which tax professional can better understand that if tax consultant use his professional knowledge and experience and perform his work according to tax laws of the country then he is able to locate mistakes or incomplete or non provision of information from taxpayer side. In conclusion, timely and accurate Filing Income Tax Returns 2025 is essential for every taxpayer. Non disclosure of immovable property, vehicles, investments, tax payments, income, and incomplete declaration of bank transactions incurred during the period of filing tax return are common mistakes in filing tax returns. These mistakes or incomplete filing of tax return is sometimes intentional and sometimes taxpayer has little knowledge or take less interest in filing all such information in tax returns. So, if any discrepancies are found by the tax authorities after filing of tax returns then taxpayer may face assessment and audit proceedings. It is very time consuming and full of stress and in maximum cases ends in charge of additional taxes and penalties from tax authority. What are the tips for Filing a Complete Tax Return? Following are some important guidelines which we can follow in preparation of tax working papers and can avoid incomplete tax filings! Conclusion: Taxpayer should provide the data on time which tax consultant can process without any delay. It will in great interest of taxpayer because in this way he can avoid unnecessary assessments and audits. He can avoid penalties and additional taxes due to incomplete and wrong filing of tax return. Tax Consultant should also perform his work professionally and complete and submit the working after proper review. - Extension of Date in Submission of Sales Tax and Federal Excise Return
Extension of Date in Submission of Sales Tax and Federal Excise Return Extension of Date in Submission of Sales Tax and Federal Excise Return. Recently the Federal Board of Revenue (FBR) has extended the last date for submission of Sales Tax and Federal Excise Return for the month of March 2024. New date for filing sales tax return is now up to April 22, 2024. Moreover, it is reminded here that the previously last date for filing of monthly sales tax return was April 18, 2024. For this purpose, the FBR has recently circulated an office directive to the Inland Revenue officials. According to the office directive: “in exercise of the powers conferred under section 74 of the Sales Tax Act, 1990 and section 43 of the Federal Excise Act, 2005, the FBR has directed that the due date of submission of Sales Tax and Federal Excise Return for the tax period of March, 2024, which is due on April 18, 2024, is extended to April 22, 2024, FBR added.“ - Tax Concept: Meaning & Types of Taxes in PakistanTax Concept: Meaning & Types of Taxes in Pakistan Tax Concept: Meaning & Types of Taxes in Pakistan. In Pakistan, tax concepts refer to the principles of taxes that control the taxation system in the country. Here is the list of some important tax concepts and their brief meanings: Types of Taxes in Pakistan In Pakistan, there are mainly following types of taxes:
- Rs 750 Prize Bond Draw List 15 April 2024Rs 750 Prize Bond Draw List 15 April 2024 Rs 750 Prize Bond Draw List 15 April 2024. The 98th draw for the Rs. 750 prize bond is scheduled to take place in Hyderabad on April 15, 2024. Here are the details: Prizes of Rs 750 Prize Bond Draw If you’re participating in this draw, I wish you the best of luck! Remember, it’s a chance to win a big reward, and who knows—you might be one of the fortunate winners! 🎉🤞 Winners of Rs 750 Prize Bond Draw Dated 15 April 2024 Following are winners of Rs 750 Prize bond draw held at 15 April 2024 at Hyderabad: For the complete list of winners, check the Prize Bond 750 List 15 April 2024 list published by the Directorate of National Savings.
