The federal government aims to collect around Rs. 188.58 billion through the new Automotive Development Levy on locally assembled or manufactured vehicles over five years, according to revenue projections in the draft auto policy approved by Prime Minister Shehbaz Sharif.
The estimates put projected collections at Rs. 37.71 billion in 2026-27, rising to Rs. 38.46 billion in 2027-28, ProPakistani has learnt.
The government expects collections of Rs. 38.29 billion in 2028-29, followed by Rs. 37.30 billion in 2029-30 and Rs. 36.83 billion in 2030-31.
The five-year total comes to Rs. 188.58 billion.
The draft policy sets different levy rates according to vehicle type and engine capacity.
Cars below 1,000cc would carry a zero rate, while vehicles between 1,001cc and 2,000cc would face a 2 percent levy.
Cars above 2,000cc would carry a proposed rate of 10 percent.
The rates would also cover imported and locally assembled or manufactured internal combustion engine vehicles.
Two- and three-wheelers and agricultural tractors would be exempt, while trucks and light commercial vehicles, buses and vans, and specified prime movers would carry a 2 percent rate.
The government expects collections from the locally assembled or manufactured vehicle category to remain relatively stable throughout the five-year period, ranging from Rs. 36.83 billion to Rs. 38.46 billion annually.
The policy document also provides separate estimates for levy collections on imported vehicles.
The final revenue impact would depend on the policy’s implementation, the applicable calculation mechanism and the volume and mix of vehicles sold or imported during the 5-year period.
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