Government Imposes Car Purchase Ban on Non-Filers

Jawad

11 Jun 2025

258

Government Imposes Car Purchase Ban on Non-Filers

In the Federal Budget 2025–26, the Pakistani government has introduced strict new policies targeting tax evasion, including a major move: a Non-Filers Car Ban. According to the latest Non-Filer Car Policy, individuals who do not file tax returns will no longer be allowed to buy vehicles in Pakistan.

This step falls under broader efforts to improve tax collection and encourage financial transparency. Finance Minister Muhammad Aurangzeb, while presenting the budget, stated that only tax filers who submit their wealth statements will be eligible to make formal financial transactions — including vehicle purchases. These new Car Buying Rules are being framed as an essential part of FBR Non-Filer Rules, aimed at pushing citizens toward the formal economy.

The Vehicle Purchase Policy is considered one of the toughest ever introduced in Pakistan. By enforcing these Car Purchase Restrictions, the government hopes to expand the tax base and strengthen compliance. The Non-Filers Vehicle Ban will effectively block non-compliant individuals from registering or buying new cars, a key part of daily economic activity.

Green Tax on Vehicles Introduced

In addition to the car ban for non-filers, the government has also announced a Green Tax in the 2025–26 budget. This environmental levy is designed to promote cleaner transportation options while also adding to state revenue.

Here’s a quick breakdown of the Green Tax policy:

Smaller Engines (Under 1300cc): Locally manufactured or imported vehicles with engines under 1300cc will carry a 1% tax on their value.

Mid-Sized Engines (1300cc to 1800cc): Cars in this range will face a 2% tax, applicable to both local and imported vehicles.

Larger Engines (Over 1800cc): Vehicles with engines over 1800cc will see a 3% Green Tax.

Commercial Vehicles (Buses and Trucks): These will have a 1% levy, whether imported or locally assembled.

These measures mean vehicle prices may increase slightly, depending on how manufacturers choose to adjust pricing. This could influence not just buyers, but the overall car market in the country.

Impact and Public Reaction

The combination of the Car Ban Pakistan and the Green Tax has sparked widespread debate. Some see these reforms as a positive step toward a cleaner, more transparent economy, while others worry about the burden on honest consumers. For those who already follow Tax Filers Car Rules, there will be no major disruption. But for non-filers, this marks a major shift.

Do you think banning non-filers from buying vehicles is the right move? Will the Green Tax actually help the environment, or just make cars more expensive? Share your views in the comments below — we’d love to hear your take on these new tax law vehicles updates.

NonFilers Car Ban Car Purchase Restrictions NonFilers Vehicle Ban Tax Filers Car Rules Car Buying Rules Vehicle Purchase Policy NonFiler Car Policy Car Ban Pakistan FBR NonFiler Rules Tax Law Vehicles

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