Karachi, March 7, 2025 – The collection of sales tax on motor cars has witnessed an extraordinary 193% increase during the first half (July – December) of the current fiscal year 2024-25, according to a report released by the Federal Board of Revenue (FBR). The FBR reported that it collected Rs 12.85 billion in sales tax on motor cars during this period, a significant surge compared to Rs 4.39 billion collected in the corresponding half of the previous fiscal year. The sharp rise in sales tax collection reflects the substantial growth in the automobile sector and increased demand for motor cars. The increase in sales tax revenue can be largely attributed to a remarkable 54% growth in motor car sales during the first half of the fiscal year 2024-25. According to data from the Pakistan Auto Manufacturers Association (PAMA), total motor car sales during this period reached 60,676 units, significantly higher than the 39,454 units sold in the same period last year. In December 2024 alone, motor car sales stood at 9,800 units, reflecting a 3% Month-on-Month (MoM) decline but an impressive 69% Year-on-Year (YoY) increase. Despite the minor MoM decline, the overall YoY growth remains strong, contributing positively to the surge in sales tax collection. The FBR…